TravelCenters of America LLC announced the completion of its previously announced sale of 225 standalone convenience stores, one standalone restaurant, five parcels of land and certain related assets, or the convenience stores business, for an aggregate sale price of $330.8 million. The estimated net proceeds of $321.4 million after transaction related costs are expected to be used to reduce the company’s future rent and/or interest payment obligations. Andrew J. Rebholz, TA’s Chief Executive Officer, made the following statement regarding the disposition:
“This strategic divestment is a significant step in support of TA’s strategy to be a more focused leader in the travel center industry. The sale of the convenience stores business will allow us to address the company’s leverage, focus more on our core travel centers business and thoughtfully pursue our growth programs.”
The aggregate sale price amount is subject to a customary post-closing adjustment based on the final working capital balance, but TA currently expects that any such adjustment will not be material.
A Form 8-K will be filed in conjunction with the sale that includes pro forma financial statements.