Ashford Hospitality Trust, Dallas, has restructured and extended the maturity date on a $203.4 million mortgage loan that was originally due this month.
According to the company's third quarter 10-Q filing, the loan is secured by five hotels; the lender was not disclosed.
The new maturity date is March 2014. The interest rate was increased from Libor plus 172 basis points to Libor plus 450 basis points. Ashford did pay down $25 million of the loan at closing, reducing the principal to $178.4 million.
Furthermore, terms include that 85% of the excess cash flow after debt service, working capital and approved capital expenditures will be used to pay down the balance.
Ashford also said it is in negotiations with the special servicer to restructure and extend a $167 million non-recourse loan that matures in May 2012. This loan is secured by 10 hotels and has an interest rate of Libor plus 165 basis points.
The company added it is in parallel negotiations with other lenders looking to refinance this loan.