TA Petro Overview of SVC Leases and Financial Upside
Other Key Events
July 6, 2020-Raised Equity to Fund Property Improvements and Much-Needed IT Updates
• Raised $80 million to fund catch-up of deferred property maintenance and overhaul key IT system infrastructure
Necessary to be competitive and support growth in EBITDA and Cash Flow we aim to achieve over the next 2 to 3 years
December 23, 2019 - Announced the Reinstatement of Biodiesel Blenders' Tax Credits:
• The U.S. government retroactively reinstated the federal biodiesel blenders' tax credits for 2018 and 2019
•
Typically, these tax credits are approved retroactively at the end of the year but did not pass in Congress in 2018
Legislation also approved these tax credits through 2022, providing future certainty on their eligibility
• As of September 30, 2020, TA had collected $69.9 million in cash of the $70.2 million in biodiesel blenders' tax credits
earned in 2018 and 2019
August 1, 2019 - Conversion from LLC to Corporation:
• Conversion effective as of August 1, 2019
• Concurrent five-to-one reverse stock split
• Conversion made it easier for a broad group of investors to own TA stock, including possible index eligibility
January 16, 2019 - SVC Lease Restructuring and Asset Acquisition:
• Purchased 20 travel centers from SVC for $308.2 million (1), reduced annual minimum rent to SVC by $43.1 million, and
extended in-place leases with SVC by an additional 3 years
• Agreement to reduce deferred rental obligations to $70.5 million (of the then outstanding $150.0 million total)
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
• Transaction reduced TA's rental expenses and improved TA's financial and operating leverage
9
(1)
Excludes transaction costs of $1.4 million.
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