• ITVI.USA
    15,746.290
    48.010
    0.3%
  • OTRI.USA
    23.890
    0.480
    2.1%
  • OTVI.USA
    15,748.000
    48.490
    0.3%
  • TLT.USA
    2.810
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.640
    0.250
    7.4%
  • TSTOPVRPM.CHIATL
    2.680
    -0.160
    -5.6%
  • TSTOPVRPM.DALLAX
    1.450
    -0.060
    -4%
  • TSTOPVRPM.LAXDAL
    3.300
    0.010
    0.3%
  • TSTOPVRPM.PHLCHI
    2.020
    0.040
    2%
  • TSTOPVRPM.LAXSEA
    4.030
    0.130
    3.3%
  • WAIT.USA
    132.000
    7.000
    5.6%
  • ITVI.USA
    15,746.290
    48.010
    0.3%
  • OTRI.USA
    23.890
    0.480
    2.1%
  • OTVI.USA
    15,748.000
    48.490
    0.3%
  • TLT.USA
    2.810
    0.010
    0.4%
  • TSTOPVRPM.ATLPHL
    3.640
    0.250
    7.4%
  • TSTOPVRPM.CHIATL
    2.680
    -0.160
    -5.6%
  • TSTOPVRPM.DALLAX
    1.450
    -0.060
    -4%
  • TSTOPVRPM.LAXDAL
    3.300
    0.010
    0.3%
  • TSTOPVRPM.PHLCHI
    2.020
    0.040
    2%
  • TSTOPVRPM.LAXSEA
    4.030
    0.130
    3.3%
  • WAIT.USA
    132.000
    7.000
    5.6%
NewsTrucking

TravelCenters of America goes all-in for $200M loan

CEO Pertchik caps first year in job with big bet on makeover

TravelCenters of America (NASDAQ: TA) pledged practically all of its assets to secure a $200 million loan to pay for CEO Jonathan Pertchik’s makeover of the business.

It is TA’s second major fundraising effort this year. It sold 6.1 million new shares in the company at $14.61 a share in July after cutting the price by about a third from the original asking price. TA raised about $80.1 million from the sale. 

Buyers of those shares have done well. TA shares closed Monday up 3% at $32.98.

The seven-year loan has a 7% interest rate payable in quarterly payments equal to 1% of the principal annually. The balance would be due on the maturity date. TA can prepay the loan after two years at par.

Assets pledged

The loan is secured by a pledge of all the equity interests of “substantially all of TA’s wholly owned subsidiaries. Most other TA assets are on the line as well, according to a company press release issued after the markets closed Monday.

TA will use the proceeds for general business purposes. That includes funding of deferred capital expenditures, updates to key IT infrastructure, and growth initiatives in Pertchik’s transformation plan. Pertchik is a veteran turnaround expert hired as CEO a year ago this week. 

“By closing this new loan, we have further strengthened our balance sheet and given ourselves increased flexibility in a dynamic capital environment,” he said.

Pertchik’s restructuring

Pertchik’s hired a new chief financial officer and executive vice presidents to oversee restaurants, gaming and convenience stores, corporate development, and information technology. The sweeping reorganization in May included cutting 130 corporate positions.

TA is pursuing franchisees to take over existing truck stops to grow the TA, Petro Stopping Centers and TA Express travel center brands. TA is focused on converting good-quality, well-located independent truck stops to the TA model, Pertchik told FreightWaves in a March interview.

Taking care with loan money

“As we look ahead to 2021, we have the people, the plan, the processes and now the liquidity to advance our transformation playbook,” he said in the press release.

TA is being careful with the loan money, Pertchik said. The travel center network operator has 270 locations in 44 states and Canada. It is managing through the pandemic with little certainty of what lies ahead.

TA has closed, reopened and closed dine-in restaurants in many states because of the pandemic. It laid off more than 3,000 employees in March. Business conditions allowed some to return.

TravelCenters of America reprices sales lower but stock falls again

Veteran turnaround expert takes on TravelCenters of America makeover

TravelCenters lays off more than 3,000 as full-service restaurants idled

Click for more FreightWaves articles by Alan Adler.

Alan Adler

Alan Adler is a Detroit-based award-winning journalist who worked for The Associated Press, the Detroit Free Press and most recently as Detroit Bureau Chief for Trucks.com. He also spent two decades in domestic and international media relations and executive communications with General Motors.

22 Comments

  1. Why would one stop at a TA for fueling and pay upward of $3.25 a gallon for diesel, when the exact same fuel can be purchased elsewhere for $.50-.60 cheaper across the street at the mom & pop stop??

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