ASHFORD HOSPITALITY TRUST ANNOUNCES AMENDMENT TO STRATEGIC FINANCING IN ANTICIPATION OF PAY OFF
Ashford Hospitality Trust (NYSE: AHT) has secured an amendment to its strategic financing, reducing the exit fee from 15.0% to 12.5% of the original loan balance through December 15, 2024, conditional on reducing the outstanding loan balance to $50 million or less by November 15, 2024. The company has made significant progress in its debt reduction plan through asset sales of $311 million, refinancing of the Renaissance Nashville hotel generating $17 million in excess proceeds, and raising approximately $173 million through non-traded preferred capital. The current outstanding balance on the strategic financing is approximately $82 million, representing a 59% reduction from the original principal.
Ashford Hospitality Trust (NYSE: AHT) ha ottenuto un emendamento al proprio finanziamento strategico, riducendo la commissione di uscita dal 15,0% al 12,5% del saldo del prestito originale fino al 15 dicembre 2024, a condizione di ridurre il saldo del prestito a $50 milioni o meno entro il 15 novembre 2024. L'azienda ha fatto progressi significativi nel suo piano di riduzione del debito attraverso vendite di attivi per $311 milioni, rifinanziamento dell'hotel Renaissance Nashville che ha generato $17 milioni in proventi aggiuntivi, e raccogliendo circa $173 milioni attraverso capitale preferito non quotato. L'attuale saldo pendente sul finanziamento strategico è di circa $82 milioni, che rappresenta una riduzione del 59% rispetto al capitale originale.
Ashford Hospitality Trust (NYSE: AHT) ha logrado una enmienda en su financiamiento estratégico, reduciendo la comisión de salida del 15.0% al 12.5% del saldo original del préstamo hasta el 15 de diciembre de 2024, siempre que se reduzca el saldo de préstamo pendiente a $50 millones o menos para el 15 de noviembre de 2024. La compañía ha realizado avances significativos en su plan de reducción de deuda a través de ventas de activos por $311 millones, el refinanciamiento del hotel Renaissance Nashville, que generó $17 millones en ingresos adicionales, y la recaudación de aproximadamente $173 millones a través de capital preferente no negociado. El saldo pendiente actual del financiamiento estratégico es de aproximadamente $82 millones, lo que representa una reducción del 59% respecto al principal original.
애시포드 호스피탈리티 트러스트 (NYSE: AHT)는 전략적 금융의 수정안을 확보하여 종료 수수료를 원금 잔고의 15.0%에서 2024년 12월 15일까지 12.5%로 줄였습니다. 이는 2024년 11월 15일까지 대출 잔고를 5천만 달러 이하로 줄이는 조건입니다. 이 회사는 3억 1천 1백만 달러의 자산 판매, 1천 7백만 달러의 잉여 수익을 발생시킨 르네상스 내슈빌 호텔의 재융자, 비상장 우선주를 통해 약 1억 7천 3백만 달러를 모금하는 것을 통해 부채 감소 계획에서 상당한 진전을 이루었습니다. 현재 전략적 금융의 미결 잔고는 약 8천 2백만 달러로, 원금 대비 59% 감소한 수치입니다.
Ashford Hospitality Trust (NYSE: AHT) a obtenu un amendement à son financement stratégique, réduisant les frais de sortie de 15,0% à 12,5% du solde du prêt initial jusqu'au 15 décembre 2024, sous condition de réduire le solde du prêt à 50 millions de dollars ou moins d'ici le 15 novembre 2024. L'entreprise a réalisé des progrès significatifs dans son plan de réduction de la dette grâce à des ventes d'actifs de 311 millions de dollars, le refinancement de l'hôtel Renaissance Nashville générant 17 millions de dollars de produits supplémentaires, et la levée d'environ 173 millions de dollars par le biais de capitaux privilégiés non négociés. Le solde actuel du financement stratégique est d'environ 82 millions de dollars, représentant une réduction de 59% par rapport au capital initial.
Ashford Hospitality Trust (NYSE: AHT) hat eine Änderung seiner strategischen Finanzierung erhalten, die die Ausstiegsgebühr von 15,0% auf 12,5% des ursprünglichen Kreditbetrags bis zum 15. Dezember 2024 senkt, sofern der ausstehende Kreditbetrag bis zum 15. November 2024 auf 50 Millionen Dollar oder weniger reduziert wird. Das Unternehmen hat erhebliche Fortschritte in seinem Schuldenreduktionsplan durch Vermögensverkäufe in Höhe von 311 Millionen Dollar, die Refinanzierung des Renaissance Nashville Hotels, die 17 Millionen Dollar an zusätzlichen Einnahmen generierte, und die Beschaffung von etwa 173 Millionen Dollar durch nicht gehandeltes bevorzugtes Kapital erzielt. Der aktuelle ausstehende Saldo der strategischen Finanzierung beträgt etwa 82 Millionen Dollar, was einer Reduzierung um 59% gegenüber dem ursprünglichen Kapital entspricht.
- Reduction in exit fee from 15.0% to 12.5% on strategic financing
- Successfully executed $311 million in asset sales year-to-date
- Generated $17 million in excess proceeds from Renaissance Nashville refinancing
- Raised $173 million through non-traded preferred capital
- Reduced strategic financing balance by 59% to $82 million
- Must reduce loan balance to $50 million or less by November 15, 2024 to secure lower exit fee
- Operating in difficult hotel transaction and financing market conditions
Insights
The amendment to AHT's strategic financing marks a significant development in their debt restructuring efforts. The reduction in exit fee from
- Asset sales totaling
$311 million - Renaissance Nashville refinancing generating
$17 million in excess proceeds - Non-traded preferred capital raising of
$173 million
The market's challenging conditions for hotel transactions and financing make these achievements particularly noteworthy. The company's systematic approach to debt reduction and the successful execution of their January plan demonstrates strong financial management, though meeting the November 15 deadline will be important for securing the exit fee reduction.
The strategic financing represents the Company's only fully recourse debt obligation, and this amendment represents the latest in a series of targeted initiatives undertaken by the Company to complete repayment of that obligation. In January of this year, the Company announced its plan to pay off its strategic financing, which includes raising sufficient capital through a combination of asset sales, mortgage debt refinancings, and non-traded preferred capital raising.
"We are pleased to provide this update on the plan to pay off our strategic financing and the significant progress that we've made," said Stephen Zsigray, Ashford Trust's President and Chief Executive Officer. "Despite a difficult hotel transaction and financing market, we have carefully executed on the plan that we laid out earlier this year, and we plan to close a few additional transactions in the coming weeks that would enable us to completely pay off this financing."
The Company has made significant progress on this plan with year-to-date asset sales of approximately
The current outstanding balance on the strategic financing is approximately
Ashford Hospitality Trust is a real estate investment trust (REIT) focused on investing predominantly in upper upscale, full-service hotels.
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 federal securities regulations. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," or other similar words or expressions. Additionally, statements regarding the following subjects are forward-looking by their nature: our business and investment strategy; anticipated or expected purchases, sales or dispositions of assets; our projected operating results; completion of any pending transactions; our plan to pay off strategic financing; our ability to restructure existing property-level indebtedness; our ability to secure additional financing to enable us to operate our business; our understanding of our competition; projected capital expenditures; the impact of technology on our operations and business; the risk that the notice and noncompliance with NYSE continued listing standards may impact the Company's results of operations, business operations and reputation and the trading prices and volatility of the Company's common stock; and the Company's ability to regain compliance with the NYSE continued listing standards. 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. These and other risk factors are more fully discussed in the Company's filings with the SEC.
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.
FAQ
What is the new exit fee for AHT's strategic financing after the amendment?
How much has AHT raised through asset sales in 2024?
What is the current outstanding balance on AHT's strategic financing?
How much has AHT raised through non-traded preferred capital?
