Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - ASHFORD HOSPITALITY TRUST INC | d84868e8vk.htm |
Exhibit 99.1
|
NEWS RELEASE |
Contact:
|
David Kimichik | Andrea Welch | Scott Eckstein | |||
| Chief Financial Officer | Investor Relations | Financial Relations Board | ||||
| (972) 490-9600 | (972) 778-9487 | (212) 827-3766 |
ASHFORD HOSPITALITY TRUST ANNOUNCES NEW
$105 MILLION REVOLVING CREDIT FACILITY
$105 MILLION REVOLVING CREDIT FACILITY
DALLAS, September 26, 2011 — Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that
it has entered into a new $105 million senior credit facility which replaces the Company’s previous
credit line that was scheduled to mature in April 2012. The new credit facility provides for a
three-year revolving line of credit at 275 to 350 basis points over LIBOR, which is the same as the
Company’s previous credit line. There is a one-year extension option subject to the satisfaction of
certain conditions. The new credit facility includes the opportunity to expand the borrowing
capacity by up to $45 million to an aggregate size of $150 million. The financial covenant tests
with respect to fixed charge coverage ratio and leverage tests are similar to the Company’s
previous credit line. Since the Company had a zero balance on the previous credit line, no cash
was utilized to pay it down upon termination. Also, the Company does not have any immediate
intention to draw down proceeds on the new credit facility.
“We are very pleased to be able to maintain our operational flexibility given that our new credit
facility has similarities to our previous credit line,” said Monty J. Bennett, Chief Executive
Officer of Ashford Hospitality Trust. “We considered our improved cash position and future capital
needs to construct a new credit facility that enhances our ability to execute our strategic growth
plans. Additionally, we are afforded greater financial and strategic freedom to utilize a full
range of alternatives to address upcoming debt maturities. Lastly, we look forward to benefiting
from the solid relationship orientation of the lenders in our new credit facility.”
KeyBanc Capital Markets acted as the lead arranger and KeyBank National Association as
administrative agent with participating lenders including: Morgan Stanley Bank, N.A., Credit
Suisse AG, and UBS Loan Finance LLC. The borrowings under the new credit facility may be used for
investment purposes, reduction of property level debt, and other general corporate purposes.
Ashford is a self-administered real estate investment trust focused on investing in the hospitality
industry across all segments and at all levels of the capital structure. Additional information
can be found on the Company’s website at www.ahtreit.com.
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
Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to
risks and uncertainties. When we use the words “will likely result,” “may,” “anticipate,”
“estimate,” “should,” “expect,” “believe,” “intend,” or similar expressions, we intend to identify
forward-looking statements. Such forward-looking statements include, but are not limited to, the
timing for closing, the impact of the transaction on our business and future financial condition,
our business and investment strategy, our understanding of our competition and current market
trends and opportunities and projected capital expenditures. Such statements are subject to
numerous assumptions and uncertainties, many of which are outside Ashford’s control.
These forward-looking statements are subject to known and unknown risks and uncertainties, which
could cause actual results to differ materially from those anticipated, including, without
limitation: general volatility of the capital markets and the market price of our common stock;
changes in our business or investment strategy; availability, terms and deployment of capital;
availability of qualified personnel; changes in our industry and the market in which we operate,
interest rates or the general economy; and the degree and nature of our competition. These and
other risk factors are more fully discussed in Ashford’s filings with the Securities and Exchange
Commission.
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
are not obligated to publicly update or revise any forward-looking statements, whether as a result
of new information, future events or circumstances, changes in expectations or otherwise.
-END-