Ashford Hospitality Trust Secures Commitment For $200 Million Corporate Financing With Ability To Upsize To $350 Million

DALLAS, Dec. 28, 2020 /PRNewswire/ — Ashford Hospitality Belief, Inc. (NYSE: AHT) (“Ashford Belief” or the “Firm”) as we speak introduced that the Firm has secured a strategic financing dedication from funds managed by Oaktree Capital Administration, L.P. (“Oaktree”) to offer a $200 million senior secured time period mortgage (“Mortgage”). As well as, the financing dedication might be upsized by $150 million to an mixture quantity of $350 million.

“We’re inspired by the information relating to vaccines and imagine this strategic financing dedication supplies substantial capital and ample liquidity for Ashford Belief to capitalize on the upcoming restoration within the hospitality business,” commented J. Robison Hays, Ashford Belief’s President and Chief Govt Officer. “We have had nice success in our forbearance efforts and we proceed to take aggressive measures to optimize our properties in addition to improve our operational and monetary flexibility.”

Mr. Hays added, “Oaktree is a best-in-class institutional companion and we welcome the chance to work with them on our shared imaginative and prescient for the Firm. We imagine that our portfolio will not be solely well-positioned as we come out of this pandemic, however Ashford Belief now has a sound steadiness sheet and enough capital sources to efficiently navigate the pandemic and pursue long-term progress.”

The Mortgage has a 3-year time period with two, 1-year extension choices topic to sure charges and checks. The Mortgage additionally permits the Firm the choice to accrue (and never pay in money) the curiosity expense for as much as two years, and Oaktree shall be eligible to obtain an exit charge which may be paid by the Firm in both money or warrants.

The dedication is topic to customary circumstances and is predicted to shut within the coming weeks.

Ashford Belief intends to make use of the online proceeds from this company financing to strengthen its steadiness sheet, enhance liquidity and for basic company functions.

RBC Capital Markets, LLC served because the Firm’s monetary advisor on the transaction, and Weil, Gotshal & Manges LLP and Cadwalader, Wickersham & Taft LLP served as authorized counsel.

The Firm has offered extra info on this transaction in a Type 8-Ok filed with the Securities and Change Fee, which might be discovered within the Investor Relations part of the Firm’s web site at www.ahtreit.com.

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Ashford Hospitality Belief is an actual property funding belief (REIT) targeted on investing predominantly in higher upscale, full-service inns.

Ashford has created an Ashford App for the hospitality REIT investor group. The Ashford App is out there totally free obtain at Apple’s App Retailer and the Google Play Retailer by looking “Ashford.”

About Oaktree Capital Administration, L.P.

Oaktree is a frontrunner amongst international funding managers specializing in different investments, with $140 billion in belongings below administration as of September 30, 2020. The agency emphasizes an opportunistic, value-oriented and risk-controlled strategy to investments in credit score, non-public fairness, actual belongings and listed equities. The agency has over 1,000 staff and places of work in 19 cities worldwide. For added info, please go to Oaktree’s web site at http://www.oaktreecapital.com/.

Sure statements and assumptions on this press launch include or are primarily based upon “forward-looking” info and are being made pursuant to the secure harbor provisions of the Personal Securities Litigation Reform Act of 1995. Ahead-looking statements on this press launch embrace, amongst others, statements concerning the Firm’s technique and future plans. These forward-looking statements are topic to dangers and uncertainties. Once we use the phrases “will probably consequence,” “could,” “anticipate,” “estimate,” “ought to,” “anticipate,” “imagine,” “intend,” or comparable expressions, we intend to determine forward-looking statements. Such statements are topic to quite a few assumptions and uncertainties, lots of that are exterior Ashford Belief’s management.

These forward-looking statements are topic to recognized and unknown dangers and uncertainties, which might trigger precise outcomes to vary materially from these anticipated, together with, with out limitation: the Firm’s capability to finish the potential debt financing contemplated by the Dedication Letter; the affect of the novel pressure of coronavirus (COVID-19) on our enterprise; the flexibility of the Firm and the Firm’s advisor, Ashford Inc., to proceed as a going concern; the timing and final result of the Securities and Change Fee’s investigation; our capability to fulfill the New York Inventory Change continued itemizing requirements; our capability to repay, refinance or restructure our debt and the debt of sure of our subsidiaries; basic volatility of the capital markets and the market worth of our frequent inventory and most well-liked inventory; adjustments in our enterprise or funding technique; availability, phrases and deployment of capital; availability of certified personnel; adjustments in our business and the market by which we function, rates of interest or the overall economic system; and the diploma and nature of our competitors. These and different threat components are extra totally mentioned within the Firm’s filings with the Securities and Change Fee.

The forward-looking statements included on this press launch are solely made as of the date of this press launch. Traders mustn’t place undue reliance on these forward-looking statements. We is not going to publicly replace or revise any forward-looking statements, whether or not because of new info, future occasions or circumstances, adjustments in expectations or in any other case besides to the extent required by regulation.