DALLAS and TORONTO, March 30,
2021 /CNW/ -- NexPoint Hospitality Trust (TSX-V: NHT.U)
("NHT") today announced that a subsidiary of NHT has, between
November 2020 and January 2021, issued convertible notes (the
"Notes") in the aggregate principal amount of US$5.3 million (the "Liquidity Transactions") to
an affiliate of NHT's external advisor.
The Notes bear interest at a rate of 2.25% per annum, and are
repayable in trust units of NHT ("Trust Units") at the option of
NHT in its sole discretion. The approval of the TSX Venture
Exchange will be required prior to any amounts owing under the
Notes being satisfied by the issuance of Trust Units. NHT used the
proceeds of the Liquidity Transactions for general working capital
purposes. Management believes the Liquidity Transactions will
further strengthen NHT's balance sheet and liquidity profile to
better position itself as the hospitality industry continues to
rebound from the impact of the COVID-19 pandemic.
The Liquidity Transactions constituted a related party
transaction as defined in Multilateral Instrument 61-101 –
Protection of Minority Security Holders in Special
Transactions ("MI 61-101"). The Liquidity Transactions were
completed in reliance on (i) an available exemption from the formal
valuation requirement of MI 61-101 provided in paragraph (a) of
Section 5.5 of MI 61-101 and (ii) an available exemption from the
minority shareholder requirement of MI 61-101 provided in paragraph
(a) of Section 5.7(1) of MI 61-101. The fair market value of the
Notes does not exceed and did not exceed at the time of issuance of
any of the Notes 25% of NHT's market capitalization.
About NexPoint Hospitality Trust
NexPoint Hospitality Trust is a publicly traded real estate
investment trust, with its units listed on the TSX Venture Exchange
under the ticker NHT.U. NHT is focused on acquiring, owning and
operating well located hospitality properties in the United States that offer a high current
yield and in many cases, that are underperforming assets with the
potential to increase in value through investments in capital
improvements, a market-based recovery, brand repositioning, revenue
enhancements, operational improvements, reducing expense
inefficiencies, and exploiting excess land or underutilized space.
NHT owns 11 branded properties sponsored by Marriott, Hilton and
InterContinental Hotels Group, located across the U.S.,
specifically in the Seattle,
Portland, Dallas, Nashville and St.
Petersburg markets. NHT is externally advised by NexPoint
Real Estate Advisors VI, L.P. For more information, visit
www.nexpointhospitality.com.
Cautionary Statement Regarding Forward-Looking
Information
This news release may contain forward-looking information within
the meaning of applicable securities legislation, which reflects
NHT's current expectations regarding future events and in some
cases can be identified by terms such as "will", "may", "expected"
and other similar expressions. Forward-looking information is based
on a number of assumptions and is subject to a number of risks and
uncertainties, many of which are beyond NHT's control, that could
cause actual results and events to differ materially from those
that are disclosed in or implied by such forward-looking
information. Such risks and uncertainties include, but are not
limited to, risks related to the effect of the Liquidity
Transactions on NHT's balance sheet and liquidity profile and the
ability of the hospitality industry to recover from the impact of
the COVID-19 pandemic. Information contained in forward-looking
statements is based upon certain material assumptions. While
management considers these assumptions to be reasonable based on
currently available information, they may prove to be incorrect.
NHT does not undertake any obligation to update such
forward-looking information, whether as a result of new
information, future events or otherwise, except as expressly
required by applicable law. This forward-looking information speaks
only as of the date of this news release.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
For Further Information:
Investor Relations
Jackie
Graham
JGraham@nexpoint.com
Chief Financial Officer
Brian Mitts
BMitts@nexpoint.com
SOURCE NexPoint Hospitality Trust