News Column

Ashford Trust Completes Refinancing Of $165 Million Loan

February 15, 2014

By a News Reporter-Staff News Editor at Real Estate & Investment Business -- Ashford Hospitality Trust, Inc. (NYSE: AHT) (" Ashford Trust " or the "Company") announced 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. Keywords for this news article include: Mortgage, Real Estate, Ashford Hospitality Trust Inc. . Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


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Source: Real Estate & Investment Business


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