Ashford Hospitality Trust, Inc. - AHT STOCK NEWS

Ashford Hospitality Trust (NYSE: AHT) announced the closing of strategic financing with Oaktree Capital Management, securing $200 million initially, with an option for an additional $250 million. This optional drawdown is an increase of $100 million from earlier terms. The company aims to leverage this partnership to enhance profitability as vaccine distribution increases. Further details are available in their SEC Form 8-K. Ashford is a REIT focusing on upper upscale, full-service hotels.

Cygnus Capital, owning 2.8% of Ashford Hospitality Trust (AHT), has announced plans to nominate five independent director candidates for AHT's Board at the 2021 Annual Meeting. Cygnus cites AHT's poor governance and financial performance, highlighting negative total stockholder returns of -90.72% over one year. The firm criticizes the Board's conflicts of interest and questionable financial decisions and aims to initiate significant reforms to enhance shareholder value. Their campaign for boardroom change is backed by a slate of qualified candidates with substantial industry expertise.

Ashford Hospitality Trust (AHT) announced a strategic financing commitment from Oaktree Capital Management, providing a $200 million senior secured term loan, with the possibility to upsize to $350 million. The loan, aimed at enhancing liquidity and strengthening the balance sheet, has a 3-year term and allows interest to be accrued for two years. Ashford Trust's CEO expressed confidence in the company's recovery in the hospitality sector post-pandemic, attributing potential growth to this financing. The deal is expected to close soon with customary conditions.

Ashford Hospitality Trust (NYSE: AHT) announced the completion of its Exchange Offers for the company's Preferred Stock, which expired on November 20, 2020. Approximately 30% of the Preferred Stock participated, resulting in the conversion of shares into newly issued Common Stock at a rate of 5.58 shares per each Preferred Stock. Notably, 24% of the Series D, 37% of the Series F, 27% of the Series G, 27% of the Series H, and 34% of the Series I Preferred Stock participated. The remaining shares of each series will continue to remain outstanding.

Ashford Hospitality Trust (AHT) announced the results of its Exchange Offers for its Preferred Stock, which expired on November 20, 2020. Approximately 30% of the shares were tendered, with Series F Preferred Stock seeing the highest participation at 37%. A total of approximately 38,388,760 new common shares will be issued as a result, expected to close on November 25, 2020. The Company has filed necessary documents with the SEC, including a registration statement and proxy statement, to facilitate these exchanges.

Ashford Hospitality Trust (AHT) announced compliance with NYSE listing standards following a letter from the NYSE on November 19, 2020. Initially notified on October 1, 2020, about non-compliance concerning market capitalization and stockholders' equity, the NYSE clarified that these criteria do not apply to real estate investment trusts (REITs). The NYSE plans to remove the .BC indicator from AHT's stock symbol. The company, focusing on upper upscale, full-service hotels, has also launched an app for hospitality REIT investors.

Cygnus Capital, one of the largest shareholders of Ashford Hospitality Trust (AHT), owning about 9.4% of common stock, expressed concerns over AHT's recent exchange offers. Cygnus believes these offers are a distraction and calls for immediate termination. The firm urges the Board to enhance transparency on AHT's liquidity, consider strategic alternatives like fee reductions and potential sales, and to reduce related party transactions. Cygnus asserts that AHT could recover $1.6 billion in equity value if decisive actions are taken by the Board.

Ashford Hospitality Trust (NYSE: AHT) announced the extension of its exchange offer for preferred stock until November 20, 2020, allowing holders to exchange shares for newly issued common stock. The exchange will now only offer stock consideration, removing the cash option. The financing condition has also been eliminated, allowing the exchange to proceed without raising at least $30 million. As of October 23, 2020, over 2 million shares of preferred stock had been tendered. The company will not seek further approval for a charter amendment related to this exchange.

Cygnus Capital, a major stockholder of Ashford Hospitality Trust (AHT), owning 9.4% of shares, urges the company to end its dilutive exchange offers for preferred stock. The postponement of a stockholder meeting indicates lack of support for the proposed charter amendment aimed at converting preferred stock. Cygnus Capital accuses AHT management of prioritizing insiders' interests over stockholders and calls for transparency and alternative restructuring methods. They recommend increasing the cash pool for exchanges, reducing preferred stock conversion, and exploring options like bridge loans and rights offerings.