Service Properties plunges to record low after launching $500 mln stock offering

Service Properties Trust SVC.O shares plunge 33% to record low $1.20 early Tues as it seeks equity to pay down debt

Newton, Massachusetts-based net lease retail and hotel REIT late Mon commenced $500 mln stock offering

It intends to use net proceeds to redeem all or a portion of its outstanding notes due 2027

Helix Partners and the RMR Group, SVC's manager, indicated to buy up to $100 mln and $50 mln of the offering, respectively. SVC's CEO and CFO and other insiders also indicated to buy shares

In connection with offering, co says will expand its board by adding an independent trustee with hotel experience in the near term, which is intended to enhance governance as it seeks to improve the performance of its hotel portfolio

Yorkville Secs lead bookrunner along with Jones Trading

Co has ~168.1 mln shares outstanding for $300 mln market cap as of Mon

With move on the session, stock has shed >50% over the past year

All 3 analysts covering the stock rate it "hold" with 2 PTs of $2 and $2.50, per LSEG data