TA Petro Overview of SVC Leases and Financial Upside
Overview of SVC Leases
Key Components of SVC Lease Payments
A Annual Minimum Rent (1)
Ⓑ Percentage Rent
-
3.0% of the yearly increase in non-fuel revenue
over applicable base year non-fuel revenue (2012
for 35 properties, 2015 for 138 properties, 2017 for
2 properties, 2019 for 3 properties, and 2020 for 1
property)
- Additional 0.5% of yearly increase in non-fuel
revenue over 2019 non-fuel revenue
Deferred Rent
Historical Lease Payments to SVC
($ in millions)
A Annual Minimum Rent
B Percentage Rent
Deferred Rent
Total Lease Payments to SVC
Last Twelve
Months
Year Ended December 31,
2018
2019
Ended,
9/30/2020
$286
$247
$244
Future Lease Payments to SVC
($ in millions, as of 09/30/2020)
4
3
13
18
$290
$264
$265
Annual
Minimum
SVC
Total
SVC
Year Ended December 31,
2021
Rent (2)
Subleases
Deferred
Rent
SVC Lease
Payments
$244
$9
$18
$271
2022
244
7
18
269
2023
244
7
4
255
2024
244
7
251
As of September 30, 2020, the total amount of
deferred rent outstanding was $44 million, due in 12
equal quarterly installments, and will be fully paid
off by the end of 1Q 2023
2025
244
7
251
2026
244
7
250
2027
244
7
251
2028
244
7
251
2029
244
7
251
2030
202
6
207
Thereafter
559
15
574
Total
$2,956
$85
$40
$3,081
16
(1)
(2)
TA may request that SVC purchase approved capital improvements that TA makes at leased properties, in return for an increase in TA's annual minimum rent equal to the amount paid by SVC multiplied by the greater of (i) 8.5% or (ii) a benchmark
U.S. Treasury interest rate plus 3.5%. SVC is not required to purchase any improvements and TA is not required to sell any improvements to SVC.
Figures presented represent annual minimum rent to SVC and do not include rental payments made for properties we sublease from SVC or rental payments made to others.
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