NEW YORK, April 30, 2015 /PRNewswire/ -- RDG Capital Fund Management (together with its affiliates "RDG"), a shareholder of TravelCenters of America ("TA" or the "Company") (NYSE: TA), announced today it has engaged in constructive dialogue with the Company's CEO Tom O'Brien and other Board members. RDG is pleased the Board has indicated a willingness to consider the potential monetization of company-owned real estate as a source of liquidity.
In addition, RDG has held discussions with a leading national real estate firm which has completed more than $12.5 billion in real estate transactions and has expressed interest in TA's properties. According to its independent assessment, this leading real estate firm estimates the property value of TA's company-owned travel center sites alone to be worth in excess of $400 million. This amount confirms RDG's estimate and conservatively excludes any property value attributed to TA's company-owned convenience stores and undeveloped acreage, which RDG believes are worth at least another $75 million. As a result, RDG is confident TA can unlock significant shareholder value by conducting sale leaseback transactions to realize $475 million in real estate value.
In recent weeks, RDG has also spoken with long-term and significant TA shareholders who have expressed support for the monetization of the Company's real estate.
By conducting real estate sale leaseback transactions, RDG believes TA can reduce the significant gap between the Company's current share price and its fair market value, which RDG estimates to be $24 - $27 per share.
RDG looks forward to continuing its constructive dialogue with the Board regarding opportunities to enhance shareholder value.
About RDG Capital Fund Management
New York-based RDG Capital Fund Management ("RDG") is a private investment firm founded by Russell Glass, the former President of Icahn Associates. RDG manages investment funds which primarily focus on undervalued companies with identifiable catalyst opportunities to enhance shareholder value.
Any views expressed herein represent the opinions of RDG, whose analysis is based solely on publicly available information. No representation or warranty, express or implied, is made with respect to the accuracy, timeliness or completeness of the information contained herein. RDG expressly disclaims any and all liability based, in whole or in part, on such information, any errors therein or omissions therefrom. Any opinions expressed herein are subject to change without notification. Forward looking statements involve certain risks and uncertainties and assumptions. Actual results may differ materially from those contained in forward looking statements. RDG does not assume any obligation to update, correct or revise the information contained herein. RDG intends to review its managed funds' investment in the Company on a continuing basis and may from time to time and at any time in the future depending on various factors, including, without limitation, the outcome of any discussions referenced above, the Company's financial position and strategic direction, actions taken by the Board, price levels of the Company's shares, other investment opportunities available to RDG, conditions in the securities market and general economic and industry conditions, take such actions with respect to its managed funds' investment in the Company as it deems appropriate, including, without limitation: (i) acquiring additional shares and/or other equity, debt, notes, other securities, or derivative or other instruments that are based upon or relate to the value of the shares or the Company in the open market or otherwise; (ii) disposing of any or all of such securities or instruments in the open market or otherwise; or (iii) engaging in any hedging or similar transactions with respect to such securities or instruments.
Figures may represent estimates of RDG or third parties and may not be indicative of future results. There is no assurance or guarantee with respect to the prices at which any securities of the Company will trade, and such securities may not trade at prices that may be implied or stated herein. The estimates and pro forma information set forth herein are based on assumptions that RDG believes to be reasonable, but there can be no assurance or guarantee that actual results will not differ materially. The information contained herein does not recommend the purchase or sale of any security nor is it an offer to sell or a solicitation of an offer to buy any security. Furthermore, the information contained herein is not intended to be, nor should it be construed or used as, investment, tax or legal advice. No representation or warranty is made that RDG's investment process or investment objectives will or are likely to be achieved or successful or that RDG's managed funds' investments will make any profit or will not sustain losses. Past performance is not indicative of future results. Nothing contained herein should be taken as any form of commitment on the part of RDG to take any action in connection with any particular security. RDG and its affiliates are in the business of buying and selling securities. They have, and may in the future, buy, sell or change the form of their position in the Company or any security for any or no reason whatsoever. RDG has neither sought nor obtained the consent from any third party to use any statements or information contained herein that have been obtained or derived from statements made or published by such third parties which RDG may not be able to independently verify. Any such statements or information should not be viewed as indicating the support of such third parties for the views expressed herein. Furthermore, RDG makes no representations or warranties as to the accuracy, timeliness or completeness of such information.
RDG Capital Fund Management LP
SOURCE RDG Capital Fund Management