Service Properties Trust Is Navigating Their Debt Problem

REITer's Digest4.39K FollowersFollow5ShareSavePlay(10min)CommentsSummarySVC faces severe refinancing risk as it navigates upcoming debt maturities.SVC's $500 million equity issuance at all-time low share prices signals an inability to refinance debt through traditional channels.Leverage ratios have deteriorated, with interest coverage at 1.5x and net debt to EBITDAre near 10x, raising bankruptcy risk.I maintain a Sell rating on SVC, as massive dilution and weak cash flow per share diminish prospects for dividend recovery. Joe_Potato/iStock via Getty Images History Doesn't Repeat Itself, But It Often Rhymes -Mark Twain There has been trouble in the markets over the past several months. Everywhere you look, there appear to be new problems popping up. First, it was the privateThis article was written byREITer's Digest4.39K FollowersFollowREITer's DigestAnalyst’s Disclosure: I/we have a beneficial long position in the shares of PLD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.