Ashford refinances with new $200 million non-recourse mortgage loan

By Jennifer Chiou

New York, Jan. 27 - Ashford Hospitality Trust, Inc. refinanced its $165 million MIP Portfolio mortgage loan with a new $200 million non-recourse mortgage loan, which has a two-year initial term and three one-year extension options, according to an 8-K filing with the Securities and Exchange Commission.

The $165 million loan had a final maturity date in March 2015.

The filing stated that the new loan is interest only and has a floating rate of Libor plus 475 basis points with a 0.2% Libor floor.

The refinance resulted in excess net proceeds of about $30 million, which will be added to the company's unrestricted cash balance. As a result, this refinancing is neutral on a net debt basis, the filing stated.

"We are very pleased to start 2014 on such a solid footing, by proactively refinancing the MIP portfolio loan while also realizing substantial excess proceeds to improve our liquidity position," chairman and chief executive officer Monty J. Bennett said in a press release.

"This is yet another example of our team's proven ability to utilize favorable debt market conditions to manage our debt maturity schedule."

The new loan is secured by the five hotels.

Ashford is a Dallas-based real estate investment trust focused on investing in the hospitality industry.

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