TravelCenters Pricing Set

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TravelCenters Pricing Set

Pricing has been assigned to the $805 million, JPMorgan and Lehman Brothers-led amended credit facility for TravelCenters of America.

Pricing has been assigned to the $805 million, JPMorgan and Lehman Brothers-led amended credit facility for TravelCenters of America. The deal launched last Tuesday with pricing on the revolver set at LIBOR plus 2 1/4% and pricing on the "B" loan at LIBOR plus 2%. The deal consists of a three-year, $125 million revolver and a six-year, $680 million term loan (LMW, 6/6).

The new credit will refinance more expensive debt and put in place an essentially all-senior structure. The company's existing bank debt will be replaced as will $190 million of 12 3/4% senior subordinated notes. The company 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. A TravelCenters spokesman could not provide comment by press time.

 

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