TORONTO, July 26, 2019 /CNW/ -- NexPoint Hospitality Trust
("NHT") (TSXV: NHT.U) announced today that it has scheduled
a special meeting of its unitholders (the "Meeting") to
consider and vote on a private placement (the "Private
Placement") in connection with the previously announced
acquisition of Condor Hospitality Trust, Inc. ("Condor")
(NYSE American: CDOR) and Condor's operating partnership, Condor
Hospitality Limited Partnership (the "Transaction"). If
approved, the Private Placement will be made pursuant to an equity
commitment letter (the "Equity Commitment Letter") entered
into by NHT's operating partnership, NHT Operating Partnership, LLC
(the "NHT OP"), and NexPoint Advisors, L.P.
("NexPoint").
Pursuant to the Equity Commitment Letter, NexPoint committed to
provide, or to cause one or more of its affiliates or its or their
advised accounts to provide, directly or indirectly through one or
more of their affiliated funds, equity financing to NHT OP for an
aggregate amount equal up to US$308,200,000 (the "Commitment"). The
amount of the Commitment may be reduced to the extent it will be
possible, notwithstanding such reduction, to consummate the
Transaction and/or to the extent a separate debt commitment letter
is delivered in accordance with the terms of the Transaction. The
net proceeds under the Equity Commitment Letter will be used to
fund payments due from NHT OP at closing under the Transaction.
The Private Placement will constitute a related party
transaction under Multilateral Instrument 61-101 – Protection of
Minority Security Holders in Special Transactions ("MI
61-101"). As a result, NHT is seeking approval of the Private
Placement from its minority unitholders pursuant to Section 5.6 and
Part 8 of MI 61-101. NHT is exempt from the formal valuation
requirements of MI 61-101 pursuant to Subsection 5.5(b) of MI
61-101, as no securities of NHT are listed on a specified market
for the purposes of MI 61-101.
The special meeting will be held on August 30, 2019 at 10:00 a.m. (Toronto time), at 333 Bay Street, Suite 3400,
Toronto, Ontario. NHT unitholders
of record as of the close of business on July 29, 2019 will be entitled to notice of, and
to vote at, the special meeting.
Further information regarding the Private Placement and the
Transaction is available in NHT's news release dated July 22, 2019 and will be contained in a
management information circular that NHT will prepare, file on
SEDAR at www.sedar.com and mail to NHT unitholders in advance of
the Meeting. Copies of the news release dated July 22, 2019 are available on SEDAR.
About NexPoint Hospitality Trust
NexPoint Hospitality Trust is a publicly traded real estate
investment trust focused on acquiring, owning and operating
well-located hospitality properties in the United States that offer a high current
yield and in many cases, that are underperforming assets with the
potential to increase in value through investments in capital
improvements, a market-based recovery, brand repositioning, revenue
enhancements, operational improvements, reducing expense
inefficiencies, and exploiting excess land or underutilized space.
NHT owns 11 branded properties sponsored by Marriott, Hilton and
InterContinental Hotels Group, located across the U.S.,
specifically in the Seattle,
Portland, Dallas, Nashville and St.
Petersburg markets. NHT is externally advised by NexPoint
Real Estate Advisors VI, L.P., an affiliate of Highland Capital
Management, L.P., a leading global alternative asset manager and an
SEC-registered investment adviser. For more information, visit
www.nexpointhospitality.com.
For further information, please contact:
Jackie Graham
Investor Relations Manager
NexPoint Hospitality Trust
Tel: 972-419-6213
Fax: 972-628-4147
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
SOURCE NexPoint Hospitality Trust, Inc.