Ashford Hospitality Trust Secures $210.8 Million in New Long-Term, Fixed-Rate Financing
October 19 2005 - 6:44PM
PR Newswire (US)
DALLAS, Oct. 19 /PRNewswire-FirstCall/ -- Ashford Hospitality
Trust, Inc. (NYSE:AHT) today announced it has closed a $210.8
million, 10-year, fixed- rate loan with Merrill Lynch Mortgage
Lending, Inc. The new loan was combined with Ashford's existing
$370 million Merrill Lynch financing closed in June 2005. This
combined loan was split into seven pools with two different
maturity dates. Four of the pools totaling $286.1 million mature in
2015 at a blended rate of 5.26%. Three of the pools totaling $294.6
million mature in 2016 at a blended rate of 5.53%. The loan pools
require monthly interest-only payments for five years with the
principal amortization thereafter on a 25- year schedule. The new
loan refinances $129.9 million in securitized debt that the Company
assumed in conjunction with its March 2005 acquisition of a
21-hotel portfolio. The $129.9 million consisted of three loans
that had maturity dates of 2008, 2009 and 2011 and a weighted
average interest rate of 6.82%. In connection with the refinancing,
the Company expects to incur a one-time expense totaling
approximately $7.4 million, or $0.12 per diluted share, in the
fourth quarter of 2005 for the write-off of unamortized loan costs
and a defeasance charge. "An important component of Ashford's
investment strategy is to continue to lower our borrowing costs by
taking advantage of the low rates at the long end of the yield
curve. This new financing achieves this objective," said Monty J.
Bennett, President and CEO of Ashford Hospitality Trust. Ashford
Hospitality Trust is a self-administered real estate investment
trust focused on investing in the hospitality industry across all
segments and at all levels of the capital structure, including
direct hotel investments, first mortgages, mezzanine loans and
sale-leaseback transactions. Additional information can be found on
the Company's web site at http://www.ahtreit.com/. Certain
statements and assumptions in this press release contain or are
based upon "forward-looking" information and are being made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. These forward-looking statements are
subject to risks and uncertainties. When we use the words "will
likely result," "may," "anticipate," "estimate," "should,"
"expect," "believe," "intend," or similar expressions, we intend to
identify forward-looking statements. Such forward-looking
statements include, but are not limited to, the impact of the
financing on our business and future financial condition, our
business and investment strategy, our understanding of our
competition and current market trends and opportunities and
projected capital expenditures. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside
Ashford's control. These forward-looking statements are subject to
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated, including,
without limitation: general volatility of the capital markets and
the market price of our common stock; changes in our business or
investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and
the market in which we operate, interest rates or the general
economy; and the degree and nature of our competition. These and
other risk factors are more fully discussed in Ashford's filings
with the Securities and Exchange Commission. The forward-looking
statements included in this press release are only made as of the
date of this press release. Investors should not place undue
reliance on these forward-looking statements. We are not obligated
to publicly update or revise any forward-looking statements,
whether as a result of new information, future events or
circumstances, changes in expectations or otherwise. Contact:
Douglas Kessler COO and Head of Acquisitions (972) 490-9600 or
Tripp Sullivan Corporate Communications, Inc. (615) 254-3376
DATASOURCE: Ashford Hospitality Trust, Inc. CONTACT: Douglas
Kessler, COO and Head of Acquisitions of Ashford Hospitality Trust,
Inc., +1-972-490-9600; or Tripp Sullivan of Corporate
Communications, Inc., +1-615-254-3376 Web site:
http://www.ahtreit.com/
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