 |
| Jim George |
J.P. Morgan and Lehman Brothers are in the market with a fully underwritten, $575 million credit for TravelCenters of America that backs its $120 million acquisition of 11 travel centers from Trip Griffin Truck Service. Jim George, executive v.p. and cfo, explained that the credit will also refinance existing debt including the company's master lease facility that had sections off the balance sheet. "We're basically refinancing and putting the improvements back onto our own balance sheet," he said.
The new credit comprises a $100 million revolver and $475 million "C" loan. George declined to comment on the spread but said the company is looking to cut the pricing over its existing $100 million revolver at LIBOR plus 2 3/4% and $328 million "B" loan at LIBOR plus 3 1/4%. The existing revolver and term loan would have matured in 2006 and 2008, respectively. The new revolver is due 2009 and the term loan is due 2011.
J.P. Morgan and Credit Suisse First Boston led the previous credit. "J.P. Morgan has always been our lead," George said. "We've done some work recently with Lehman. CSFB is still involved [and is] one of our agencies that have been very active on our high yield bond offering." The company currently has $190 million of senior sub notes due 2009. Officials from J.P. Morgan and Lehman did not return calls.