Ashford Hospitality Trust announced an amendment to its strategic financing, which will reduce the exit fee from 15.0% to 12.5% of the original loan balance. This reduction is contingent on the outstanding loan balance being reduced to $50 million or less by November 15, 2024, with the reduced fee applicable through December 15, 2024.
The strategic financing represents the company's only fully recourse debt obligation. Ashford Trust has made significant progress on its plan to pay off this financing, with year-to-date asset sales totaling approximately $311 million and the refinancing of the Renaissance Nashville hotel generating approximately $17 million in excess proceeds.
Additionally, the company has raised approximately $173 million in gross proceeds from its non-traded preferred capital raise. The current outstanding balance on the strategic financing is approximately $82 million, marking a 59% reduction from the original principal balance.
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