W2007 Grace Acquisition I, Inc. and WNT Holdings, LLC Complete Sale of 116 Hotels for $1.808 Billion
February 27 2015 - 5:03PM
Business Wire
W2007 Grace Acquisition I, Inc. (“Grace”) and WNT Holdings, LLC
(“WNT”) announced today that certain of their subsidiaries have
completed the sale of 116 hotels to affiliates of American Realty
Capital Hospitality Trust, Inc. (“ARC Hospitality”) for a combined
purchase price of approximately $1.808 billion. ARC Hospitality is
a publicly registered, non-traded real estate investment trust. In
connection with the sale, ARC Hospitality assumed $903.9 million of
existing financing secured by the 96 hotels owned by WNT’s
subsidiaries and the remaining 20 hotels owned by Grace’s
subsidiaries were delivered unencumbered by any financing. In
addition to the debt assumption, the $1.808 billion purchase price
includes receipt of (i) $99.8 million of preferred equity interests
in the entity controlled by ARC Hospitality that acquired the 20
hotels from Grace’s subsidiaries and (ii) $347.3 million of such
preferred equity interests in the entity that acquired the 96
hotels from WNT’s subsidiaries. WNT now owns a portfolio of 10
hotels for which it is evaluating various strategic alternatives.
Grace no longer owns any hotels but continues to hold a 3% interest
in WNT and the $99.8 million of preferred equity interests referred
to above. Grace does not expect to commence payment of dividends or
to otherwise distribute the net proceeds from the sale transaction,
but instead expects to use the net proceeds for general corporate
purposes, including satisfaction of liabilities, and to retire
outstanding debt.
Goldman, Sachs & Co. and Deutsche Bank Securities Inc. acted
as financial advisors to the selling subsidiaries. RCS Capital, the
investment banking and capital markets division of Realty Capital
Securities, LLC, a subsidiary of RCS Capital Corporation (NYSE:
RCAP), acted as financial advisor to ARC Hospitality. Ladder
Capital Finance, LLC and Deutsche Bank AG, New York Branch provided
ARC Hospitality financing in connection with the acquisition.
Important Notice
The statements in this press release that are not historical
facts may be forward-looking statements. These forward-looking
statements involve risks and uncertainties that could cause the
outcome to be materially different. In addition, words such as
“will,” “should,” “may,” “anticipate,” “believe,” “expect” and
“intend” indicate a forward-looking statement, although not all
forward-looking statements include these words.
W2007 Grace Acquisition I, Inc. and WNT Holdings, LLCGreg Fay,
972-368-2081