DALLAS, Jan. 27, 2014 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") announced today that it has successfully refinanced its
$165 million MIP Portfolio mortgage
loan, which had a final maturity date in March 2015.
The loan on the portfolio has been refinanced with a new
$200 million non-recourse mortgage
loan with a two-year initial term and three one-year extension
options, subject to the satisfaction of certain conditions.
The new loan is interest only and provides for a floating interest
rate of LIBOR + 4.75% with a 0.20% LIBOR Floor. The refinance
resulted in excess net proceeds of approximately $30 million, which will be added to the Company's
unrestricted cash balance. As a result, this refinancing is neutral
to the Company on a net debt basis. The new loan remains
secured by the same five hotels including: the Embassy Suites
Philadelphia Airport, Embassy Suites Walnut Creek, Sheraton Mission
Valley San Diego, Sheraton Anchorage and the Hilton Minneapolis/St
Paul Airport Mall of America.
"We are very pleased to start 2014 on such a solid footing, by
proactively refinancing the MIP Portfolio loan while also realizing
substantial excess proceeds to improve our liquidity position,"
said Monty J. Bennett, Ashford
Trust's Chairman and Chief Executive Officer. "This is yet
another example of our team's proven ability to utilize favorable
debt market conditions to manage our debt maturity schedule."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing opportunistically in the hospitality
industry across all segments and at all levels of the capital
structure primarily within the United
States.
Follow Chairman and CEO Monty
Bennett on Twitter at www.twitter.com/MBennettAshford or
@MBennettAshford.
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 statements are subject to
numerous assumptions and uncertainties, many of which are outside
Ashford Trust'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 Trust'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.