Ashford Hospitality Announces Exercise of Over-Allotment Option on Series E Preferred Stock Offering
April 27 2011 - 4:46PM
Business Wire
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced the
underwriters have exercised their option to purchase 350,000 shares
of the Company’s 9.000% Series E Cumulative Preferred Stock (NYSE:
AHT.E) in connection with Ashford’s underwritten offering earlier
this month. In total, the Company sold 3,350,000 shares of Series E
Cumulative Preferred Stock at $25.00 per share.
Ashford expects to use the net proceeds of the offering to
repurchase either a portion or all of the Company’s Series B-1
Cumulative Preferred Stock, all of the shares of which are
currently held by Security Capital Preferred Growth Incorporated,
with any excess proceeds being used to pay down the Company’s
secured credit facility or for general corporate purposes.
Citi, BofA Merrill Lynch and UBS Investment Bank served as joint
book-running managers for the offering.
This press release shall not constitute an offer to sell or the
solicitation of an offer to buy any preferred stock nor shall there
be any sale of such stock in any state in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such state. A copy
of the prospectus supplement and prospectus related to the offering
may be obtained from Citi, Attention: Prospectus Department,
Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New
York 11220, or by calling (800) 831-9146; BofA Merrill Lynch, 100
West 33rd Street, 3rd Floor, New York, New York 10001, Attention:
Syndicate Operations or email dg.prospectus_requests@baml.com, or
by calling 800-294-1322; or UBS Securities LLC, Attention:
Prospectus Department, 299 Park Avenue, New York, NY 10171, or by
calling 1-877-827-6444 (ext. 561-3884).
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, second mortgages, mezzanine
loans and sale-leaseback transactions. Additional information can
be found on the Company's website at 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 timing for closing,
the impact of the transaction 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. EBITDA is defined as
net income before interest, taxes, depreciation and amortization.
EBITDA yield is defined as trailing twelve month EBITDA divided by
the purchase price. A capitalization rate is determined by dividing
the property's annual net operating income by the purchase price.
Net operating income is the property's funds from operations minus
a capital expense reserve of either 4% or 5% of gross revenues.
Funds from operations ("FFO"), as defined by the White Paper on FFO
approved by the Board of Governors of the National Association of
Real Estate Investment Trusts ("NAREIT") in April 2002, represents
net income (loss) computed in accordance with generally accepted
accounting principles ("GAAP"), excluding gains (or losses) from
sales or properties and extraordinary items as defined by GAAP,
plus depreciation and amortization of real estate assets, and net
of adjustments for the portion of these items related to
unconsolidated entities and joint ventures.
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.
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