An underwritten public offering is when a company sells new shares of its stock to the public with the help of a financial firm, called an underwriter. The underwriter agrees to buy all the shares upfront, reducing the company's risk, and then sells them to investors. This process helps companies raise money quickly and confidently from a wide range of buyers.
senior notesfinancial
Senior notes are a type of loan that a company borrows from investors, promising to pay it back with interest. They are called "senior" because in case the company faces financial trouble, these lenders are paid back before others. This makes senior notes safer for investors compared to other types of loans or bonds.
make-whole premiumfinancial
A make-whole premium is an extra payment a borrower must give bondholders when repaying debt early to compensate them for lost future interest; think of it as a lump-sum “catch-up” to leave lenders financially where they would have been if the loan had run its full term. It matters to investors because it affects how much they receive on early redemption and influences a company’s decision to refinance or repay debt, altering bond value and expected returns.
redemption pricefinancial
The redemption price is the amount of money a person receives when they sell or redeem a bond or investment before it matures. It’s important because it determines how much you get back and can affect your overall profit or loss on the investment. Think of it like the price you get when returning a gift card early—it's the value you receive at that time.
net proceedsfinancial
The amount of money a company actually keeps from a sale or fundraising after paying all direct costs and fees, similar to take-home pay after taxes and deductions. Investors care because net proceeds determine how much cash is available for things that affect value—paying debt, funding projects, buying assets, or returning money to shareholders—so it influences future growth potential and financial health.
accrued and unpaid interestfinancial
Accrued and unpaid interest is the interest that has built up on a loan or debt but hasn't been paid yet. It's like owing your friend money for a favor over time—you're expected to pay it later, even though you haven't paid it yet. This matters because it shows how much you owe beyond the original amount borrowed.
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Announces Early Redemption of $100 Million4.95% Senior Notes Due February 2027 and $450 Million5.50% Senior Notes Due December 2027
NEWTON, Mass.--(BUSINESS WIRE)--
Service Properties Trust (Nasdaq: SVC) today announced the closing of its underwritten public offering of 479.2 million common shares of beneficial interest, including 62.5 million common shares of beneficial interest issued upon the exercise in full by the underwriters of their option to purchase additional common shares, at a public offering price of $1.20 per share, before underwriting discounts and commissions. The net proceeds from the offering were approximately $542.3 million, after payment of the underwriting discount and other estimated offering expenses payable by SVC.
SVC also announced the early redemption, in full, of the $100.0 million principal amount outstanding of its 4.95% senior notes due 2027 and $450.0 million principal amount outstanding of its 5.50% senior notes due 2027, in each case, at a redemption price equal to the redeemed principal amount plus accrued and unpaid interest thereon, to, but not including, the respective redemption dates of May 2, 2026 and April 17, 2026, and the applicable make-whole premium. SVC expects to fund this redemption using the net proceeds from the offering together with cash on hand.
Yorkville Securities acted as lead bookrunner and Jones acted as bookrunning manager for the offering. B. Riley Securities, Oppenheimer & Co., Ladenburg Thalmann and Siebert acted as co-managers for the offering.
The offering was made pursuant to SVC’s effective shelf registration statement previously filed with the Securities and Exchange Commission (the "SEC"), including the base prospectus therein. A final prospectus supplement was filed with the SEC, and copies may be obtained by contacting Yorkville Securities, LLC at Capitalmarkets@yorkvilleglobal.com or JonesTrading Institutional Services LLC at ECM@Jonestrading.com or by visiting the EDGAR database on the SEC's web site at www.sec.gov.
This press release is neither an offer to sell nor a solicitation of an offer to buy common shares, nor shall there be any sale of these securities in any state or jurisdiction in which the offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction.
About Service Properties Trust
Service Properties Trust (Nasdaq: SVC) is a real estate investment trust with approximately $10 billion invested in two asset categories: service-focused retail net lease properties and hotels. As of December 31, 2025, SVC owned 760 service-focused retail net lease properties with over 13.6 million square feet throughout the United States. As of December 31, 2025, SVC also owned 94 hotels with over 21,000 guest rooms throughout the United States and in Puerto Rico and Canada. SVC is managed by The RMR Group (Nasdaq: RMR), a leading U.S. alternative asset management company with over $37 billion in assets under management as of December 31, 2025, and 40 years of institutional experience in buying, selling, financing and operating commercial real estate. SVC is headquartered in Newton, MA.
A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.
