DALLAS, Dec. 28, 2020 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") today announced that the Company has secured a strategic
financing commitment from funds managed by Oaktree Capital
Management, L.P. ("Oaktree") to provide a $200 million senior secured term loan ("Loan").
In addition, the financing commitment can be upsized by
$150 million to an aggregate amount
of $350 million.
"We're encouraged by the news regarding vaccines and believe
this strategic financing commitment provides substantial capital
and ample liquidity for Ashford Trust to capitalize on the upcoming
recovery in the hospitality industry," commented J. Robison Hays, Ashford Trust's President and
Chief Executive Officer. "We've had great success in our
forbearance efforts and we continue to take aggressive measures to
optimize our properties as well as enhance our operational and
financial flexibility."
Mr. Hays added, "Oaktree is a best-in-class institutional
partner and we welcome the opportunity to work with them on our
shared vision for the Company. We believe that our portfolio is not
only well-positioned as we come out of this pandemic, but Ashford
Trust now has a sound balance sheet and sufficient capital
resources to successfully navigate the pandemic and pursue
long-term growth."
The Loan has a 3-year term with two, 1-year extension options
subject to certain fees and tests. The Loan also allows
the Company the option to accrue (and not pay in cash) the interest
expense for up to two years, and Oaktree will be eligible to
receive an exit fee that may be paid by the Company in either cash
or warrants.
The commitment is subject to customary conditions and is
expected to close in the coming weeks.
Ashford Trust intends to use the net proceeds from this
corporate financing to strengthen its balance sheet, increase
liquidity and for general corporate purposes.
RBC Capital Markets, LLC served as the Company's financial
advisor on the transaction, and Weil, Gotshal & Manges LLP and
Cadwalader, Wickersham & Taft LLP served as legal counsel.
The Company has provided additional information on this
transaction in a Form 8-K filed with the Securities and Exchange
Commission, which can be found in the Investor Relations section of
the Company's website at www.ahtreit.com.
* * * * *
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Ashford has created an Ashford App for the hospitality REIT
investor community. The Ashford App is available for free download
at Apple's App Store and the Google
Play Store by searching "Ashford."
About Oaktree Capital Management, L.P.
Oaktree is a leader among global investment managers
specializing in alternative investments, with $140 billion in assets under management as of
September 30, 2020. The firm
emphasizes an opportunistic, value-oriented and risk-controlled
approach to investments in credit, private equity, real assets and
listed equities. The firm has over 1,000 employees and offices in
19 cities worldwide. For additional information, please visit
Oaktree's website at http://www.oaktreecapital.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. Forward-looking
statements in this press release include, among others, statements
about the Company's strategy and future plans. 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: the Company's ability to complete the potential debt
financing contemplated by the Commitment Letter; the impact of the
novel strain of coronavirus (COVID-19) on our business; the ability
of the Company and the Company's advisor, Ashford Inc., to continue
as a going concern; the timing and outcome of the Securities and
Exchange Commission's investigation; our ability to meet the New
York Stock Exchange continued listing standards; our ability to
repay, refinance or restructure our debt and the debt of certain of
our subsidiaries; general volatility of the capital markets and the
market price of our common stock and preferred 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 the Company'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 will not publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or circumstances, changes in expectations or
otherwise except to the extent required by law.
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SOURCE Ashford Hospitality Trust, Inc.