Filed Pursuant to Rule 433
Issuer Free Writing Prospectus
dated March 5, 2014
Registration No. 333-183526
Supplementing the Preliminary
Prospectus Supplement dated March 5, 2014
and Prospectus dated August 24, 2012
HOSPITALITY PROPERTIES TRUST
This information supplements the information contained in the preliminary prospectus supplement dated March 5, 2014 to the prospectus dated August 24, 2012.
PRICING TERM SHEET
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Issuer: |
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Hospitality Properties Trust |
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Security: |
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4.650% Senior Notes due 2024 |
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Ranking: |
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Senior Unsecured Notes |
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Format: |
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SEC Registered |
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Expected Ratings: |
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Baa2 / BBB- (Stable / Stable) A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. |
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Trade Date: |
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March 5, 2014 |
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Settlement Date: |
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March 12, 2014 (T+5) |
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Interest Payment Dates: |
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March 15 and September 15, commencing September 15, 2014 |
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Size: |
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$350,000,000 |
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Maturity: |
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March 15, 2024 |
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Benchmark Treasury: |
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2.750% U.S. Treasury due February 15, 2024 |
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Benchmark Treasury Price and Yield: |
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100-16+ / 2.690% |
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Spread to Benchmark Treasury: |
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+ 200 basis points |
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Yield to Maturity: |
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4.690% |
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Coupon (Interest Rate): |
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4.650% per annum |
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Price to Public: |
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99.683% of principal amount, plus accrued interest from March 12, 2014 |
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Net Proceeds: |
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$346.6 million (before other expenses associated with the transaction) |
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Use of Proceeds: |
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The Issuer estimates that the net proceeds from the offering will be approximately $346.0 million after payment of the underwriting discount and other estimated offering expenses payable by the Issuer. The Issuer expects to use the net proceeds from the offering to repay amounts outstanding under its revolving credit facility and for general business purposes, which may include funding hotel renovations or rebranding costs and potential future acquisitions. Pending such application, the Issuer may invest the net proceeds in short term investments, some or all of which may not be investment grade rated. |
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Redemption Provision: |
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Make-whole call at any time based on U.S. Treasury plus 30 basis points. If the notes are redeemed on or after September 15, 2023, the make-whole amount will be zero. |
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CUSIP / ISIN: |
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44106MAS1 / US44106MAS17 |
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Joint Book-Running Managers: |
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Citigroup Global Markets Inc. RBC Capital Markets, LLC UBS Securities LLC Wells Fargo Securities, LLC |
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Joint Lead Managers: |
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Merrill Lynch, Pierce, Fenner & Smith Incorporated BBVA Securities Inc. Morgan Stanley & Co. LLC PNC Capital Markets LLC Regions Securities LLC |
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Co-Managers: |
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BB&T Capital Markets, a division of Capital One Securities, Inc. Comerica Securities, Inc. Mitsubishi UFJ Securities (USA), Inc. Mizuho Securities USA Inc. Santander Investment Securities Inc. SMBC Nikko Securities America, Inc. TD Securities (USA) LLC U.S. Bancorp Investments, Inc. |
The issuer has filed a registration statement (including a prospectus dated August 24, 2012 and a preliminary prospectus supplement dated March 5, 2014) with the SEC for the offering to which this communication relates. Before you invest, you should read the prospectus in that registration statement, the related preliminary prospectus supplement and other documents the issuer has filed with the SEC for more complete information about the issuer and this offering. You may get these documents for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, the issuer, any underwriter or any dealer participating in the offering will arrange to send you the prospectus and preliminary prospectus supplement if you request it by calling Citigroup Global Markets Inc. toll-free at (800) 831-9146; RBC Capital Markets, LLC toll-free at (866) 375-6829; UBS Securities LLC toll-free at (877) 827-6444 ext. 561-3884; or Wells Fargo Securities, LLC toll-free at (800) 326-5897.