Service Properties Trust surges on TravelCenters/BP deal

Service Properties Trust

16/02/2023 20:59

** Service Properties Trust's  SVC.O  shares surging 22.5%
to $10.56 as REIT set to benefit from acquisition of its largest
tenant
    ** SVC shares rise as much as 28.4% to $11.07, highest
levels since Nov 2021
    ** SVC said it expects to receive $379.3 mln in cash when
British energy giant BP Plc  BP.L  completes pending buy of
TravelCenters of America Inc  TA.O   urn:newsml:reuters.com:*:nBw4VxtN6a
    ** BP offered to acquire the roadside convenience store
operator at $86/sh for $1.3 bln in cash
    ** SVC leases 178 properties to, and holds 7.8% stake in TA
valued at $101.9 mln based on BP's buyout bid
    ** SVC, which also owns certain tradenames and trademarks
associated with TA’s business, to be paid $89.4 mln by BP, and
co will also receive $188 mln of prepaid rent under amended
leases
    ** About 4.4 mln SVC shares have traded on the session vs
stock's 50-DMA volume of ~920k, per Refinitiv
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))