WILLIAMSBURG, Va.--(BUSINESS WIRE)--
MHI
Hospitality Corporation (NASDAQ: MDH) (the “Company”)
today announced that it has successfully executed a new $14.3 million
secured loan with Fifth Third Bank, collateralized by a first mortgage
on the Crowne
Plaza Jacksonville Riverfront Hotel in Jacksonville, Florida. The
loan carries a floating interest rate of the 30-day LIBOR rate plus 3.0%
and amortizes on a 25-year schedule. The maturity date is July 10, 2015
with an extension option until July 10, 2016. The loan also contains an
earn-out feature which allows for an additional $3.0 million in proceeds
to be funded during the term of the loan, contingent upon satisfaction
of certain debt coverage and loan-to-value covenants. Proceeds from the
loan were used to pay off the Hotel’s existing $14.0 million mortgage,
which carried a fixed interest rate of 8.0%, and to pay closing costs
related to the transaction.
Andrew M. Sims, Chief Executive Officer of the Company, commented, “We
are very pleased with the terms of this transaction as it results in an
annual interest savings of approximately $650,000 on a normalized basis.
Further, with the completion of this transaction, we have successfully
completed a strategic initiative to restructure our balance sheet by
closing six new mortgage loans over the past 11 months for combined
proceeds of $86.0 million and a current weighted average interest of
4.50%, while also eliminating our syndicated credit facility and
redeeming nearly half of our outstanding preferred stock.”
About MHI
Hospitality Corporation
MHI Hospitality Corporation is a self-managed and self-administered
lodging REIT focused on the acquisition, renovation, upbranding and
repositioning of upscale to upper upscale full-service hotels in the
Mid-Atlantic and Southern United States. Currently, the Company’s
portfolio consists of investments in ten hotel properties, nine of which
are wholly-owned and comprise 2,113 rooms. All of the Company’s
wholly-owned properties operate under the Hilton Worldwide,
InterContinental Hotels Group and Starwood Hotels and Resorts brands.
The Company has a 25.0 percent interest in the Crowne Plaza Hollywood
Beach Resort. MHI Hospitality Corporation was organized in 2004 and is
headquartered in Williamsburg, Virginia. For more information please
visit www.mhihospitality.com.
MHI Hospitality Corporation
Scott
Kucinski
Director - Investor Relations
757-229-5648
Source: MHI Hospitality Corporation