DALLAS, Dec. 12, 2011 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) today announced that it has
successfully restructured its $203.4
million mortgage loan and extended the maturity date from
December 2011 to March 2014.
There is also a one-year extension option subject to the
satisfaction of certain conditions. The restructuring
provides for a new interest rate of LIBOR + 4.50%, with no LIBOR
Floor. At the closing of the restructuring, the Company paid
down the loan by $25 million to $178.4
million. Additionally, terms include that 85% of
excess cash flow after debt service, working capital, and approved
capital expenditures will be used to pay down the debt balance and
thereby further deleverage the portfolio.
Ashford has successfully addressed upcoming debt maturities and
is well positioned regarding the next few years. In addition
to this most recent restructure, the Company previously announced
entering into a new $105 million
revolving credit facility that replaced the Company's pre-existing
credit line that was scheduled to mature in April 2012. The
facility is currently undrawn. All other Company debt is
non-recourse.
The Company is engaged in negotiations with the special servicer
to restructure and extend the $167
million non-recourse portfolio mortgage loan that matures in
May 2012. On a parallel path, the Company is also in
discussion with third party lenders to refinance this loan.
There is a high likelihood of a viable restructure or refinance
under current market conditions given the level of existing cash
held in reserve for a possible debt pay down for this
loan.
All other remaining 2012, 2013, and 2014 debt maturities have
current trailing twelve month NOI debt yields ranging from 10.2% to
15.6%, with the exception of one small loan of just under
$20 million on the Hilton El
Conquistador in Tucson, AZ. Considering the current
pre-recovery operating cash flow levels and even the depressed
lending market, the expectation is that financing should be
available to replace these other loans coming
due.
"We are very pleased to announce this restructuring and
extension with a market pay down which preserves our cash for more
accretive opportunities," said Monty J.
Bennett, Chief Executive Officer of Ashford Hospitality
Trust. "Given our success with this loan restructuring and
continued improvement in our portfolio performance through RevPAR
growth and gains in operating margin, we remain confident in our
ability to address future debt maturities. As always, we will
work diligently to reach agreements that maximize long-term
shareholder value."
Ashford 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.
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.
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.
SOURCE Ashford Hospitality Trust, Inc.