• ITVI.USA
    16,350.840
    -55.350
    -0.3%
  • OTLT.USA
    2.731
    0.025
    0.9%
  • OTRI.USA
    21.660
    -0.160
    -0.7%
  • OTVI.USA
    16,343.200
    -45.660
    -0.3%
  • TSTOPVRPM.ATLPHL
    3.520
    0.380
    12.1%
  • TSTOPVRPM.CHIATL
    2.960
    -0.660
    -18.2%
  • TSTOPVRPM.DALLAX
    1.610
    0.250
    18.4%
  • TSTOPVRPM.LAXDAL
    3.340
    -0.130
    -3.7%
  • TSTOPVRPM.PHLCHI
    2.100
    -0.250
    -10.6%
  • TSTOPVRPM.LAXSEA
    3.860
    -0.220
    -5.4%
  • WAIT.USA
    126.000
    -2.000
    -1.6%
  • ITVI.USA
    16,350.840
    -55.350
    -0.3%
  • OTLT.USA
    2.731
    0.025
    0.9%
  • OTRI.USA
    21.660
    -0.160
    -0.7%
  • OTVI.USA
    16,343.200
    -45.660
    -0.3%
  • TSTOPVRPM.ATLPHL
    3.520
    0.380
    12.1%
  • TSTOPVRPM.CHIATL
    2.960
    -0.660
    -18.2%
  • TSTOPVRPM.DALLAX
    1.610
    0.250
    18.4%
  • TSTOPVRPM.LAXDAL
    3.340
    -0.130
    -3.7%
  • TSTOPVRPM.PHLCHI
    2.100
    -0.250
    -10.6%
  • TSTOPVRPM.LAXSEA
    3.860
    -0.220
    -5.4%
  • WAIT.USA
    126.000
    -2.000
    -1.6%
NewsTrucking

TravelCenters of America reprices shares lower, but stock falls again

Shares down 11.59% as investors shun bigger, less expensive offering

TravelCenters of America (NASDAQ: TA) cut the price of its public offering of new shares by more than a third to $14, but its stock price fell again Wednesday, closing below the new asking price.

TA shares closed Wednesday at $13.59, down $1.81 or 11.75% on the NASDAQ.

Westlake, Ohio-based TA planned to sell $75 million worth of shares of new stock at $21.88, the closing price last Friday. But shares cratered on Monday, falling nearly 22%.  

The operator of 263 travel plazas and truck stops in 44 states and Canada lowered the price and increased the size of the offering to 6.1 million shares after the market closed Tuesday. TA expected to fetch $85.4 million before expenses. 

The underwriters managing the offering, Citigroup, BMO Capital Markets, B. Riley FBR and BTIG, have a 30-day option to purchase an additional 915,000 shares at the $14 price less expenses.

Net proceeds from the offering will pay for deferred maintenance, other property enhancements and general corporate purposes, TA said. 

The company cut its planned 2020 capital expenditures from $118.9 million to $62 million because of the coronavirus pandemic. It mutually agreed with International House of Pancakes (IHOP) to delay for a year the conversion of some of up to 94 restaurants planned for conversion over five years. 

As of March 31, TA had $20.3 million in cash. A full $200 million credit facility was available as of April 30. The company has no near-term debt coming due. 

Click for more FreightWaves articles by Alan Adler.

Related stories:

TravelCenters of America stock flops on new $75 million offering

Playing catch-up: TravelCenters of America kickstarts franchising

Veteran turnaround expert takes on TravelCenters of America makeover

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.

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