Preferred Stock Channel
Service Properties Trust | 7.125% Series D Cumulative Redeemable Preferred Shares (HPT.PRD)

Prospectus excerpt:  We are offering 11,000,000 shares of our 7.125% Series D Cumulative Redeemable Preferred Shares, which we refer to in this prospectus supplement as our Series D Preferred Shares. We will pay cumulative distributions on the Series D Preferred Shares in the amount of $1.78125 per share each year, which is the equivalent of 7.125% of the $25.00 liquidation preference per share. Distributions on the Series D Preferred Shares sold in this offering will be payable quarterly in arrears, on the 15th day of January, April, July and October of each year, beginning April 15, 2012.

Generally, we are not allowed to redeem the Series D Preferred Shares until January 15, 2017. On and after January 15, 2017, we may, at our option, redeem the Series D Preferred Shares, in whole or from time to time in part, for cash at a redemption price of $25.00 per share, plus any accrued and unpaid distributions to but excluding the date of redemption. In addition, upon the occurrence of a change of control the result of which our common shares of beneficial interest, par value $0.01 per share, or our common shares, and the common securities of the acquiring or surviving entity (or American Depositary Receipts, or ADRs, representing such securities) are not listed on the New York Stock Exchange, or the NYSE, the NYSE Amex Equities, or the NYSE Amex, or the NASDAQ Stock Market, or NASDAQ, or listed or quoted on a successor exchange or quotation system, we may, at our option, redeem the Series D Preferred Shares, in whole or in part and within 120 days after the first date on which such change of control occurred, by paying $25.00 per share, plus any accrued and unpaid distributions to but excluding the date of redemption. If we exercise any of our redemption rights relating to the Series D Preferred Shares, the holders of Series D Preferred Shares will not have the conversion right described below. The Series D Preferred Shares have no maturity date and will remain outstanding indefinitely unless redeemed or repurchased by us or converted in connection with a change of control by the holders of Series D Preferred Shares.

Upon the occurrence of a change of control the result of which our common shares and the common securities of the acquiring or surviving entity (or ADRs representing such securities) are not listed on the NYSE, the NYSE Amex or NASDAQ or listed or quoted on a successor exchange or quotation system, each holder of Series D Preferred Shares will have the right (unless, prior to the Change of Control Conversion Date (as defined herein), we have provided or provide notice of our election to redeem the Series D Preferred Shares) to convert some or all of the Series D Preferred Shares held by such holder on the Change of Control Conversion Date into a number of our common shares per Series D Preferred Share to be converted equal to the lesser of:

the quotient obtained by dividing (i) the sum of the $25.00 liquidation preference plus the amount of any accrued and unpaid distributions to but excluding the Change of Control Conversion Date (unless the Change of Control Conversion Date is after a record date for a Series D Preferred Share distribution payment and prior to the corresponding Series D Preferred Share distribution payment date, in which case no additional amount for such accrued and unpaid distribution will be included in this sum) by (ii) the Common Share Price (as defined herein); and 2.0500, or the Share Cap, subject to certain adjustments; subject, in each case, to provisions for the receipt of alternative consideration as described in this prospectus supplement.

The Series D Preferred Shares will rank on parity with our 8.875% Series B Cumulative Redeemable Preferred Shares, our 7% Series C Cumulative Redeemable Preferred Shares and any other series or class of our shares which we may hereafter issue ranking on parity with the Series D Preferred Shares.

Holders of our Series D Preferred Shares will generally have no voting rights except for limited voting rights if we fail to pay distributions for six or more quarterly periods (whether or not consecutive) and in certain other events. There are restrictions on ownership and transfer of the Series D Preferred Shares intended to, among other purposes, assist us in maintaining our qualification as a real estate investment trust for U.S. federal income tax purposes.

We will file an application to list the Series D Preferred Shares on the NYSE under the symbol "HPT PR D". If that application is approved, trading of the Series D Preferred Shares on the NYSE is expected to begin within 30 days after the date of initial delivery of the Series D Preferred Shares.

Full Prospectus PDF », HPT Page »

Series:D
Alternate symbology:HPT-D, HPT-PD, HPTprD
Redeemable?:Yes
Call Date:1/15/2017 (Now Trading Post Call Date)
Perpetual?:Yes
Cumulative?:Yes
Shares Offered:11,000,000
Overallotment:1,650,000
Liquidation Preference:$25
Original Coupon:7.13%
Pay Period:Quarterly
Pay Dates:15-Jan, 15-Apr, 15-Jul, 15-Oct
CDx3 Compliance Rating: Learn HPT.PRD's Rating
Service Properties Trust is a real estate investment trust. Co. invests in hotels and travel related real estate. Co. also owns travel centers, which operated under the TravelCenters of America® and Petro Stopping Centers® brand name. Co.'s travel centers are full service sites located at or near an interstate highway exit and provide fuel and non-fuel products and services. Co.'s travel center includes: parking for tractor trailers and cars; a full service restaurant and quick service restaurants; a truck repair facility and tire and parts store; diesel and gasoline fueling points; a convenience store; a game room; a lounge and other amenities for truck drivers and motorists.

Preferreds: HPT.PRC, HPTRP


Open the HPT Information Page »
Name:  Service Properties Trust
Website:  www.hptreit.com
Sector:  REITs

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