DALLAS and TORONTO, June 26,
2023 /CNW/ -- NexPoint Hospitality Trust ("NHT" or
the "REIT"), (TSX-V: NHT.U) announced today that, at the request of
the TSX Venture Exchange, it has provided an undertaking to amend
the convertible promissory notes issued to NexPoint Real Estate
Opportunities, LLC and Highland Income Fund (the "Lenders")
during the COVID-19 pandemic (the "COVID Loans") to (i)
reduce the conversion term to five years from the date of issuance;
(ii) establish a minimum acceptable conversion price based on
market prices at the time of each particular advance; and (iii)
remove the conversion of interest, such that only principal under
the COVID Loans is convertible. For one of the COVID Loans,
in an amount of US$8.5 million
advanced on February 22, 2022, the
REIT has agreed to amend the loan to remove the conversion feature
altogether. As each of the Lenders is a related party of the
REIT under Multilateral Instrument 61-101 – Protection of
Minority Security Holders in Special Transactions ("MI
61-101"), in order to enter into the amendments to the COVID
Loans, the REIT has undertaken to seek disinterested unitholder
approval at its 2023 annual and special meeting of unitholders.
The COVID Loans were in the aggregate amount of US$56,165,000. The proceeds from the COVID
Loans were used to fund the REIT's operating expenses and interest
and principal payments on outstanding indebtedness during the COVID
19 pandemic to allow the REIT to continue as a going
concern.
About NHT
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 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, expense
inefficiencies, and exploiting excess land or underutilized space.
NHT owns 10 branded properties sponsored by Marriott, Hilton,
Hyatt, and Intercontinental Hotels Group, located across the U.S.
NHT is externally advised by NexPoint Real Estate Advisors VI,
L.P.
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.
Contact:
Investor Relations
IR@nexpoint.com
Media Inquiries
MediaRelations@nexpoint.com
SOURCE NexPoint Hospitality Trust