MHI Hospitality Corporation Announces Partial Redemption of Series A Cumulative Redeemable Preferred Stock

MHI Hospitality Corporation

announced today that the Company has entered into an agreement with the holders of the Company's Series A Cumulative Redeemable Preferred Stock (the “Preferred Stock”) to redeem approximately 11,514 shares of Preferred Stock for an aggregate redemption price of approximately $12,295,234, plus the payment of related accrued and unpaid cash and dividends. The Company also entered into an amendment of its existing Note Agreement with Essex Equity High Income Joint Investment Vehicle, LLC (“Essex”) whereby the Company made a $1.5 million prepayment under the Note Agreement. In addition, the amount of the undrawn term loan commitments under the Note Agreement increased to $7.0 million, of which $2.0 million is reserved with certain use restrictions.