DALLAS and TORONTO, June 28,
2021 /CNW/ -- NexPoint Hospitality Trust,
("NHT"1), (TSX-V: NHT.U) announced today that, in lieu
of cash trustees' fees earned since January
1, 2019 and pursuant to the REIT's matching grants, it has
issued an aggregate of 339,687 deferred units (the "Deferred
Units") to the independent trustees of NHT, pursuant to NHT's
omnibus equity incentive plan. The Deferred Units vested
immediately upon grant.
Additionally, NHT announced that a subsidiary of NHT has,
between April 2021 and June 2021, issued convertible notes (the "Notes")
in the aggregate principal amount of US$13.1
million (the "Liquidity Transactions") to affiliates of
NHT's external advisor.
The Notes bear interest at a rate of 2.25% per annum, and are
repayable in membership interests ("Membership Interests") of NHT's
operating subsidiary, NHT Operating Partnership, LLC, which are
redeemable for 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 conversion of Membership
Interests into 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.
Each of 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.
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. and 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 11 branded properties sponsored by Marriott, Hilton 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:
Jackie Graham
Investor Relations
JGraham@nexpoint.com
Chief Financial Officer
Brian Mitts
BMitts@nexpoint.com
Media Inquiries
MediaRelations@nexpoint.com
1 In this release, "we," "us," "our," and "NHT" each
refer to NexPoint Hospitality Trust.
SOURCE NexPoint Hospitality Trust