X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

DALLAS-Ashford Hospitality Trust Inc. aims to reduce its borrowing costs and bolster its acquisition program via a $210-million term loan that the REIT arranged with Merrill Lynch Mortgage Lending Inc.

Ashford describes the deal as part of a series of secured financings that will add capacity to the company’s investment program, reduce its average borrowing cost on its floating rate debt by more than 130 basis points, and pay down its existing $60-million line of credit. The company expects to close this month on the $210-million term loan with Merrill Lynch, which is secured by 25 hotel properties. The loan bears interest at 195 basis points over Libor, with a maturity date of August 2006. The debt is interest only and has three one-year extension options.

Ashford anticipates using the proceeds of the loan to repay two mortgage notes totaling approximately $26 million at a rate of 350 basis points over Libor and to repay another mortgage loan of $31 million at a rate of 325 basis points over Libor. It will also pay down the $60-million line of credit facility by approximately $57 million and partially repay another mortgage note by approximately $10 million. The REIT will also use proceeds of the $210 million to partially fund its recently announced Dunn Hospitality portfolio, with remaining proceeds to fund future acquisitions.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.