SVC Is Paying 6% to Borrow Against Its Best Assets. That's the Distress Premium in One Number.
Service Properties Trust just securitized 158 retail properties for $745 million at a weighted average coupon of 5.96%, using $1.1 billion in collateral to retire 8.375% notes. When your best assets only buy you a 240-basis-point improvement, the balance sheet is telling you something the press release won't.