Ashford Hospitality Trust Secures $200 Million Corporate Funding Commitment

DALLAS—Ashford Hospitality Trust, Inc. has secured a strategic financing commitment from funds managed by Oaktree Capital Management, LP to provide a $200 million senior secured term loan. In addition, the funding commitment can be increased by $150 million to a total amount of $350 million.

“We are encouraged by the vaccine news and believe this strategic funding commitment provides substantial capital and sufficient liquidity to Ashford Trust to capitalize on the coming recovery in the hospitality industry,” said J. Robison Hays, Chairman and CEO of Ashford Trust. “We have had great success in our forbearance efforts, and we continue to take aggressive steps to optimize our properties as well as improve our operational and financial flexibility.”

He added, “Oaktree is a premier institutional partner and we welcome the opportunity to work with them on our shared vision for the business. We believe our portfolio is not only well positioned as we emerge from this pandemic, but Ashford Trust now has a strong balance sheet and sufficient capital resources to successfully weather the pandemic and pursue long-term growth.

The loan has a term of 3 years with two one-year extension options subject to certain fees and tests. The loan also allows the company to accrue (not pay cash) interest expense for up to two years, and Oaktree will be eligible to receive an exit fee which can be paid by the company in cash or in cash. subscription warrants.

The engagement is subject to customary conditions and is expected to close in the coming weeks.

Ashford Trust intends to use the net proceeds of this corporate financing to strengthen its balance sheet, increase liquidity and for general corporate purposes.

RBC Capital Markets, LLC acted as financial advisor to the company in connection with the transaction, and Weil, Gotshal & Manges LLP and Cadwalader, Wickersham & Taft LLP acted as legal advisors.

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