ASHFORD HOSPITALITY TRUST,INC. (NYSE:AHT) Files An 8-K Entry into a Material Definitive AgreementItem 1.01 Entry into a Material Definitive Agreement
The information set forth in Item 2.03 below is incorporated herein by reference.
Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant
On June13, 2018, Ashford Hospitality Trust,Inc. (the “Company”), through certain wholly owned subsidiaries of its operating partnership (each a “Borrower” and, collectively, the “Borrowers”), entered into agreements relating to six separate loans (the “Loans”), each of which is secured by separate mortgage pools, with Bank of America, N.A., Barclays Bank PLC and Morgan Stanley Bank, N.A. Each Loan is structured as a mortgage loan and one or more mezzanine loans directly or indirectly secured by the corresponding hotel properties set forth on the schedule below (collectively, the “Loan Agreements”) for aggregate borrowings of approximately $1.27 billion. The Loans refinance existing loans with existing outstanding balances totaling approximately $1.07 billion.
The Loans have a weighted average interest rate of 30-day LIBOR plus 3.85%, which shall increase by 0.125% upon commencement of each of the fourth and fifth extension periods, as described below, and require monthly payments of interest only. The Loans are nonrecourse, subject to environmental and other customary recourse carve-outs that are guaranteed by Ashford Hospitality Limited Partnership, the operating partnership of the Company, and contain such events of defaults, cure periods and remedies that are customarily granted to a secured lender, including the right to accelerate the debt and foreclose on the collateral following an uncured event of default. Each Loan has an initial term of two years with five one-year extensions available at the Borrower’s option, subject to certain conditions as described in the Loan Agreements. Each Loan is prepayable at any time, subject to a spread maintenance premium on the portion of the Loan exceeding 25% of the original principal balance prepaid prior to the 18thpayment date. The original principal amounts of each pool and the hotel properties directly or indirectly securing each such pool are set forth in the following table:
|
Pool |
Principal Amounts |
InterestRate Spread (Weighted Average) |
SecuredProperties |
|
A |
Mortgage: $144,400,000 Mezzanine: $36,320,000 |
3.67% |
Courtyard Columbus Tipton Lakes, Columbus,IN Courtyard Scottsdale Old Town, Scottsdale, AZ Residence Inn Phoenix Airport, Phoenix, AZ SpringHill Suites Manhattan Beach, Manhattan Beach, CA SpringHill Suites Plymouth Meeting, Plymouth Meeting, PA Residence Inn Las Vegas Hughes Center, Las Vegas, NV Residence Inn Newark, Newark, CA |
|
B |
Mortgage: $149,400,000 Mezzanine: $25,000,000 |
3.41% |
Courtyard Newark, Newark, CA SpringHill Suites BWI, Baltimore, MD Courtyard Oakland Airport, Oakland, CA Courtyard Plano Legacy, Plano, TX Residence Inn Plano, Plano, TX TownePlace Suites Manhattan Beach, Manhattan Beach, CA Courtyard Basking Ridge, Basking Ridge, NJ |
|
C |
Mortgage: $176,000,000 Senior Mezzanine: $25,040,000 Junior Mezzanine: $20,000,000 |
3.75% |
Sheraton San Diego Mission Valley, San Diego, CA Sheraton Bucks County, Langhorne, PA Hilton Ft. Worth, Ft. Worth, TX Hyatt Regency Coral Gables, Coral Gables, FL Hilton Minneapolis, Bloomington, MN |
|
D |
Mortgage: $185,600,000 Senior Mezzanine: $37,644,000 Junior Mezzanine: $39,396,000 |
4.04% |
Hilton Santa Fe, Santa Fe, NM Embassy Suites Dulles, Herndon, VA Marriott Beverly Hills, Beverly Hills, CA One Ocean Resort, Atlantic Beach, FL Marriott Suites Dallas Market Center, Dallas, TX |