INNSUITES HOSPITALITY TRUST (NYSEMKT:IHT) Files An 8-K Entry into a Material Definitive Agreement
Item 1.01
| Enter Into a Material Definitive Agreement |
On May 9, 2017, Ontario Hospitality Properties LLLP (Ontario), a
subsidiary of InnSuites Hospitality Trust (the Trust), entered
into a Purchase and Sale Agreement (the PSA) to sell its Best
Western InnSuites Ontario Hotel and Suites property to Minkum
Investment Group, LLC or Assignee (Buyer) an unrelated third
party to the Trust for $17.5 million with an estimated close on
June 12, 2017, or such other date as may be mutually agreed upon
by both the Trust and the Buyer, subject to IHT Board of Trustees
approval, Ontario Hospitality Properties LLLP partners approval,
and the Buyers property/financial review.
The foregoing description is not intended to be complete and is
qualified in its entirety by reference to the full text of the
PSA, which is filed as Exhibit 10.1 to this Current Report on
Form 8-K and is incorporated herein by reference.
On May 11, 2017, Ontario entered into a $5,700,000 Change in
Terms Agreement (Ontario Loan Agreement) to the existing first
mortgage loan with Arizona Bank Trust with a maturity date of
August 22, 2024. The Ontario Loan Agreement has a fixed interest
rate until August 22, 2019 and then a variable interest rate of
Wall Street Journal Prime Rate plus 1.50% margin with a floor of
4.75% and no prepayment penalty with an origination fee of 0.50%
or $10,000. The Ontario Loan Agreement provides continuation of a
guarantee from RRF, LP, James Gail Wirth, The Wirth Family Trust
and InnSuites Hospitality Trust, secured by 51% ownership
interest in Albuquerque Suite Hospitality, LLC.
The foregoing description is not intended to be complete and is
qualified in its entirety by reference to the full text of the
Agreement, which is filed as Exhibit 10.2 to this Current Report
on Form 8-K and is incorporated herein by reference.
On May 11, 2017, Yuma Hospitality Properties, LLLP entered into a
$850,000 Promissory Note Agreement (Yuma Loan Agreement) as a
credit facility to replenish funds for the hotel remodel with
1st Bank of Yuma Arizona Bank Trust with a maturity
date of September 1, 2022. The Yuma Loan Agreement has an initial
interest rate of 5.50% with a variable rate adjustment equal to
the Wall Street Journal Prime Rate plus 1.50% with a floor of
5.50% and no prepayment penalty. This credit facility is
guaranteed by InnSuites Hospitality Trust.
The foregoing description is not intended to be complete and is
qualified in its entirety by reference to the full text of the
Agreement, which is filed as Exhibit 10.3 to this Current Report
on Form 8-K and 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. |
The information set forth above under Item 1.01 is hereby
incorporated by reference into this Item 2.03.
| Item 9.01 | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| 10.1 |
Purchase and Sale Agreement, effective May 9, 2017, executive by Minkum Investment Group, LLC or Assignee, as Seller, and Ontario Hospitality Properties, LLLP, as Buyer. |
| 10.2 |
Change in Terms Agreement, dated May 11, 2017, executed by Ontario Hospitality Properties, LLLP as borrower, in favor of Arizona Bank Trust, as Lender. |
| 10.3 |
Promissory Note, dated May 11, 2017, executed by Yuma Hospitality Properties, LLLP as borrower, in favor of 1st Bank of Yuma, as Lender. |
About INNSUITES HOSPITALITY TRUST (NYSEMKT:IHT)
InnSuites Hospitality Trust (the Trust) is a real estate investment trust. The Trust is engaged in the ownership and operation of hotel properties. The Trust, with its affiliates RRF Limited Partnership and InnSuites Hotels, Inc., owns interest and operates approximately four hotels, provides management services for approximately six hotels and provides trademark license services for approximately seven hotels. The Trust operates through two segments: Hotel Operations & Corporate Overhead and IBC Developments. Its Hotel Operations & Corporate Overhead segment consists of its hotel operations at its Yuma, Arizona property. Its InnDependent Boutique Collection (IBC Hotels) or IBC Developments, a subsidiary of InnSuites Hospitality Trust, has a network of approximately 6,300 unrelated hotel properties. It provides revenue generating services and cost savings solutions to independent boutique hotels. The Trust’s hotels are trademarked as InnSuites Hotels. INNSUITES HOSPITALITY TRUST (NYSEMKT:IHT) Recent Trading Information
INNSUITES HOSPITALITY TRUST (NYSEMKT:IHT) closed its last trading session up +0.05 at 2.00 with 3,910 shares trading hands.