DALLAS, Oct. 13, 2021 /PRNewswire/ -- Ashford
Hospitality Trust, Inc. (NYSE: AHT) ("Ashford Trust" or the
"Company") announced today that the Company has amended its
strategic financing from funds managed by Oaktree Capital
Management, L.P. ("Oaktree"). The amendment extends Oaktree's
$250 million delayed draw commitment
through June of 2024 if Ashford Trust repays the initial term loan
of $200 million and accrued interest
at any time prior to June of 2023.
Additionally, among other items, the terms of the exit fee were
also amended. Under the current financing agreement, upon repayment
of the loan, Oaktree is entitled to an exit fee of either (at
Oaktree's election): (a) 1,745,260 warrants to purchase Ashford
Trust common stock or (b) 15% of the loan amount in cash (which
Ashford Trust may satisfy with Company common stock). Per the
amendment, Oaktree may elect to receive its exit fee in the form of
warrants at any time after certain conditions are met and the
amendment is effective. The Company plans to file a resale
registration statement on Form S-11 with the Securities and
Exchange Commission to register the resale of the common stock
underlying the warrants associated with the Oaktree exit
fee.
"We're excited to announce the amendment of our strategic
financing," commented Rob Hays,
Ashford Trust's President and Chief Executive Officer. "Over the
last several months the Company had made meaningful progress in
deleveraging its balance sheet while also improving its liquidity
profile. This amendment further enhances our financial flexibility
as we will maintain the ability to draw down additional funds, if
needed, even after we've paid off the strategic financing. We
appreciate Oaktree's continued partnership and ongoing commitment
to Ashford Trust."
Ashford Hospitality Trust is a real estate investment trust
(REIT) focused on investing predominantly in upper upscale,
full-service hotels.
Follow CEO Rob Hays on Twitter at
https://twitter.com/aht_rob or @aht_rob.
Forward-Looking Statements
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 impact of COVID-19, and the rate of adoption and
efficacy of vaccines to prevent COVID-19, on our business and
investment strategy; the timing and outcome of the Securities and
Exchange Commission's investigation; our ability to regain S-3
eligibility; our ability to repay, refinance or restructure our
debt and the debt of certain of our subsidiaries; anticipated or
expected purchases or sales of assets; our projected operating
results; completion of any pending transactions; our understanding
of our competition; market trends; projected capital expenditures;
the impact of technology on our operations and business; general
volatility of the capital markets and the market price of our
common stock and preferred stock; availability, terms and
deployment of capital; availability of qualified personnel; changes
in our industry and the markets 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. Such
forward-looking statements are based on our beliefs, assumptions,
and expectations of our future performance taking into account all
information currently known to us. These beliefs, assumptions, and
expectations can change as a result of many potential events or
factors, not all of which are known to us. If a change occurs, our
business, financial condition, liquidity, results of operations,
plans, and other objectives may vary materially from those
expressed in our forward-looking statements. You should carefully
consider this risk when you make an investment decision concerning
our securities. Investors should not place undue reliance on these
forward-looking statements. The Company can give no assurance that
these forward-looking statements will be attained or that any
deviation will not occur. 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, except to the extent required by
law.
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SOURCE Ashford Hospitality Trust, Inc.