JPMorgan and Bank of America are leading an amended $805 million credit facility for TravelCenters of America that will refinance more expensive debt and put in place an essentially all-senior debt structure. The credit comprises a three-year, $125 million revolver and a six-year, $680 million term loan. This will refinance the company's existing bank debt and also take out $190 million of 12 3/4% senior subordinated notes. A TravelCenter spokesman could not provide comment by press time.
The two banks put in place a $575 million credit last year to back the acquisition of 11 travel centers from Rip Griffin Truck Service. This debt was split into a $100 million revolver and a $475 million "C" loan. The spread on the institutional debt was LIBOR plus 1 3/4%, according to Markit. The pricing for the amended credit could not be determined.