Ashford Hospitality Trust Completes New Warehouse Facility
December 27 2005 - 7:30AM
PR Newswire (US)
DALLAS, Dec. 27 /PRNewswire-FirstCall/ -- Ashford Hospitality
Trust, Inc. (NYSE:AHT) today announced it has closed a $100 million
warehouse facility with UBS Real Estate Investments, Inc. to be
secured by hotel loans. The new facility is for a term of three
years and bears interest with grid pricing in the range of 150 to
275 basis points over LIBOR. Grid pricing will be dependent upon
the advance rate on the borrowing and the loan collateral type. The
new facility replaces a $45.6 million mezzanine loan warehouse
facility that bears interest at a rate of 625 basis points over
LIBOR that was paid off on November 10, 2005, in anticipation of
the new facility. In connection with the refinancing, the Company
expects to incur a one-time expense totaling approximately $1.1
million, or $0.02 per diluted share, in the fourth quarter of 2005
for the write-off of unamortized loan costs and early exit fees.
"This new credit facility significantly enhances our hotel lending
program," said Monty J. Bennett, President and CEO of Ashford
Hospitality Trust. "With the lower cost, grid pricing, and
flexibility to finance first mortgage, junior and mezzanine loans,
we will now be able to bid more competitively on new loan
opportunities. Including this new facility, we have financed or
refinanced almost $1 billion in debt during 2005, while at the same
time securing long-term, low-cost, fixed-rate financing with
flexible terms in a very favorable market. Through these efforts,
we have expanded our unencumbered asset base, reduced our weighted
averaged fixed cost of debt to 5.6%, extended our weighted average
debt maturity to approximately 10 years and fixed the rate on
approximately 93% of our non-revolving debt. Moreover, we have
increased our floating rate revolving line capacity, extended
maturities and substantially reduced our cost of capital in each of
our credit lines, giving us additional investment capacity."
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 Tripp Sullivan COO and Head of Acquisitions
Corporate Communications, Inc. (972) 490-9600 (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. for Ashford Hospitality Trust, Inc.,
+1-615-254-3376 Web site: http://www.ahtreit.com/
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