Ashford Hospitality Trust Completes Refinancing of $167.2M Loan
Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that it has successfully refinanced its sole 2012 debt maturity. The $167.2 million loan set to mature in May has been refinanced with a new $135.0 million loan that matures in May of 2014 and has three one-year extension options subject to satisfaction of certain conditions. The new loan provides for a floating interest rate of LIBOR + 6.50%, with no LIBOR Floor.
Additionally, the new loan is secured by nine hotels as the Doubletree Guest Suites in Columbus, Ohio, is now unencumbered as a result of this restructuring. The Company has listed the Doubletree Columbus for sale and plans to either sell or re-finance this hotel. After selling or re-financing the Doubletree Columbus, the Company will have only utilized its restricted cash to fund the net paydown on the new loan.
Ashford is presently engaged in discussions with several lenders regarding its $102 million of loans set to mature in early 2013. The debt yield on this high quality portfolio is currently in excess of 16%. At this time, given the level of lender interest to refinance these loans there is no anticipated pay down required.
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