TORONTO, July 26, 2019 /CNW/ -- NexPoint Hospitality Trust ("NHT") (TSXV: NHT.U) announced today that it has scheduled a special meeting of its unitholders (the "Meeting") to consider and vote on a private placement (the "Private Placement") in connection with the previously announced acquisition of Condor Hospitality Trust, Inc. ("Condor") (NYSE American: CDOR) and Condor's operating partnership, Condor Hospitality Limited Partnership (the "Transaction"). If approved, the Private Placement will be made pursuant to an equity commitment letter (the "Equity Commitment Letter") entered into by NHT's operating partnership, NHT Operating Partnership, LLC (the "NHT OP"), and NexPoint Advisors, L.P. ("NexPoint").
Pursuant to the Equity Commitment Letter, NexPoint committed to provide, or to cause one or more of its affiliates or its or their advised accounts to provide, directly or indirectly through one or more of their affiliated funds, equity financing to NHT OP for an aggregate amount equal up to US$308,200,000 (the "Commitment"). The amount of the Commitment may be reduced to the extent it will be possible, notwithstanding such reduction, to consummate the Transaction and/or to the extent a separate debt commitment letter is delivered in accordance with the terms of the Transaction. The net proceeds under the Equity Commitment Letter will be used to fund payments due from NHT OP at closing under the Transaction.
The Private Placement will constitute a related party transaction under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). As a result, NHT is seeking approval of the Private Placement from its minority unitholders pursuant to Section 5.6 and Part 8 of MI 61-101. NHT is exempt from the formal valuation requirements of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101, as no securities of NHT are listed on a specified market for the purposes of MI 61-101.
The special meeting will be held on August 30, 2019 at 10:00 a.m. (Toronto time), at 333 Bay Street, Suite 3400, Toronto, Ontario. NHT unitholders of record as of the close of business on July 29, 2019 will be entitled to notice of, and to vote at, the special meeting.
Further information regarding the Private Placement and the Transaction is available in NHT's news release dated July 22, 2019 and will be contained in a management information circular that NHT will prepare, file on SEDAR at www.sedar.com and mail to NHT unitholders in advance of the Meeting. Copies of the news release dated July 22, 2019 are available on SEDAR.
About NexPoint Hospitality Trust
NexPoint Hospitality Trust is a publicly traded real estate investment trust 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., an affiliate of Highland Capital Management, L.P., a leading global alternative asset manager and an SEC-registered investment adviser. For more information, visit www.nexpointhospitality.com.
For further information, please contact:
Investor Relations Manager
NexPoint Hospitality Trust
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.
SOURCE NexPoint Hospitality Trust, Inc.