DALLAS, Nov. 7, 2012 /PRNewswire/ -- Ashford Hospitality Trust, Inc. (NYSE: AHT) today announced that it has successfully refinanced its $154 million non-recourse mortgage loan set to mature in December 2015. The Prudential/ Wheelock loan had an outstanding balance of $154 million with a combined interest rate of 12.72%.
The loan has been refinanced with a new $211 million mortgage loan with a two-year initial term and three one-year extension options, subject to the satisfaction of certain conditions. The new loan is interest only and provides for a floating interest rate of LIBOR + 6.15% with a 0.25% LIBOR Floor. The refinance resulted in over $50 million of excess proceeds and the annual interest savings will be about $6 million per year, resulting in AFFO per share accretion of approximately $0.07. The new debt financing is neutral to the company on a net debt basis, and the company will continue to de-leverage through ongoing debt amortization payments. The new loan remains secured by the same five hotels including: the Embassy Suites Crystal City, Embassy Suites Orlando Airport, Embassy Suites Santa Clara, Embassy Suites Portland and the Hilton Costa Mesa.
"Given today's attractive debt capital market environment, we took this opportunity to address the Prudential/ Wheelock loan early and considerably lower our annual interest expense while taking out a significant amount of excess proceeds, thereby improving our liquidity position," said Monty J. Bennett, Chief Executive Officer of Ashford Hospitality Trust. "At Ashford, we are constantly evaluating such opportunities, allowing us to benefit from these unique conditions in the capital markets and continually enhance our liquidity and financial resources which is ultimately in the best interests of our shareholders."
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.
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