TravelCenters Initiates Stock Offering to Fund Growth Strategy
WESTLAKE, Ohio -- TravelCenters of America LLC (TA) will offer 6.5 million shares of its stock to the general public for $9.25 per share. The transaction is expected to close Dec. 16.
According to the Westlake, Ohio-based travel center operator, proceeds from the share sales will be used to fund its growth strategies and for general business purposes. In addition, some of the net proceeds could be used to fund a portion of the 31 convenience stores with gas stations that TA announced last month it would purchase.
The 31 stores are located in Kentucky and Tennessee, and operate under the Minit Mart banner. TA is paying $67 million for that acquisition.
TA initially announced it would sell 5 million shares to the public, but upped the number to 6.5 million shares this morning. Companies often make such a move when advised by an underwriter that demand for the share offering is high and additional shares would be purchased by the public.
Citigroup, RBC Capital Markets and UBS Investment Bank are the joint book-running underwriters for this transaction. BB&T Capital Markets, Craig-Hallum Capital Group, Janney Montgomery Scott, MLV Co. & Co., and Oppenheimer & Co. are serving as co-managers. These underwriters have been granted a 30-day option to purchase an additional 975,000 common shares of TA's stock.
TA's shares traded for $9.04 per share this morning.
TravelCenters of America LLC operates and franchises travel centers under the Travel Centers of America, TA, Petro Stopping Centers and Petro brand names. The locations offer diesel and gasoline fueling, restaurants, truck repair facilities, stores and other services. TA's nationwide business spans 42 states and Canada.