SERVICE PROPERTIES TRUST: Entry into Material Definitive Agreement, Financial Statements and Supporting Documents (Form 8-K)
Item 1.01. Conclusion of a significant definitive agreement.
The amendment also removes, under certain conditions, the restrictions on the payment of ordinary dividends and the issuance of secured debt securities that we had previously agreed to during the existing waiver period, or waiver period, during which the compliance with certain financial covenants of our credit agreement has been waived. As previously indicated, the waiver period extends until
Our revolving credit facility continues to be secured by 73 properties.
The foregoing description of the Amendment to Our Credit Agreement is not complete and is submitted and qualified in its entirety by reference to the copy of the Sixth Amendment to Our Amended and Restated Credit Agreement attached as Schedule 10.1 to this current report on Form 8-K, and is incorporated herein by reference.
Warning Concerning Forward-Looking Statements
This current report on Form 8-K contains statements that constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. Moreover, whenever we use words such as “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “will”, “may” and negatives or derivatives of these or similar expressions, we make forward-looking statements. These forward-looking statements are based on our current intentions, beliefs or expectations, but the forward-looking statements are not guaranteed to occur and may not occur. Actual results may differ materially from those contained or implied by our forward-looking statements due to a variety of factors. For instance:
The continued availability of borrowings under our revolving credit facility is
subject to our satisfying certain financial covenants and other credit facility conditions, which we may be unable to satisfy, despite the amendment,
Actual costs under our revolving credit facility will be greater than costs quoted
rate plus a premium because of fees and expenses associated with the facility,
Our ability to make future distributions to our shareholders depends on a
number of factors, including our future earnings, the capital costs we incur to acquire and maintain our properties and our working capital requirements. We may be unable to increase or maintain our current rate of distributions on our common shares and future distributions may be reduced or eliminated, and
The amendment removes, under certain conditions, restrictions on
paying common dividends and issuing secured debt that we previously agreed to during the Waiver Period. The amendment also permits us to make a one-time payment of net cash proceeds from certain transactions during the Waiver Period to repay the 2023 notes. A possible implication from these statements is that we will continue to pay a dividend to our shareholders in the future or increase the rate of such dividends. Our dividend rates are set and reset from time to time by our
Board of Trustees. Our Board of Trusteesconsiders many factors when setting dividend rates including our historical and projected income, normalized funds from operations, cash available for distribution, the then current and expected needs and availability of cash to pay our obligations and fund our investments, distributions which may be required to be paid to maintain our tax status as a real estate investment trust and other factors deemed relevant by our Board of Trusteesin its discretion. Accordingly, future dividend rates may be increased or decreased and there is no assurance as to the rate at which future dividends will be paid. Other possible implications from these statements are that we will issue secured debt in the future and that we will repay or redeem the 2023 notes prior to their maturity. The issuance of secured debt in the future and the repayment or redemption of the 2023 notes prior to their maturity are dependent on a number of factors and may not occur.
The information contained in our filings with the
You should not place undue reliance on forward-looking statements.
Except as required by law, we do not intend to update or change any forward-looking statements as a result of new information, future events or otherwise.
Section 9.01. Financial statements and supporting documents.
(d) Exhibits. 10.1 Sixth Amendment to Amended and Restated Credit Agreement, dated as of
October 4, 2022, among Service Properties Trust, Wells Fargo Bank, National Association, as Administrative Agent, and each of the other institutions party thereto. (Filed herewith.) 104 Cover Page Interactive Data File. (Embedded within the Inline XBRL document.)
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