Service Properties slides on $500 mln stock offering launch

Service Properties Trust

30/03/2026 21:37

** Service Properties Trust SVC.O down 16.2% post-market to $1.50 as it looks to raise equity

** Newton, Massachusetts-based REIT commences $500 mln stock offering

** Intends to use net proceeds to redeem all or a portion of $100.0 mln amount outstanding of 4.95% notes due 2027 and/or $450 mln amount outstanding of its 5.50% notes due 2027

** Helix Partners and the RMR Group, SVC's manager, indicated to buy up to $100 mln and $50 mln of the offering, respectively. SVC's CEO and CFO and other insiders also indicated to buy shares

** In connection with offering, co says will expand its board by adding an independent trustee with hotel experience in the near term, which is intended to enhance governance as it seeks to improve the performance of its hotel portfolio

** Yorkville Secs lead bookrunner along with Jones Trading

** Co has ~168.1 mln shares outstanding for ~$300 mln market cap

** Stock ended up 0.6% at $1.79 on Mon. Over the past year, stock has lost 33%

** All 3 analysts covering the stock rate it "hold" with 2 PTs of $2 and $2.50, per LSEG data

(Lance Tupper is a Reuters market analyst. The views expressed are his own)

((lance.tupper@tr.com 1-646-279-6380))