TORONTO, March 29, 2019 /CNW/ -- NexPoint Hospitality Trust (the "REIT") announced today that it has completed its initial public offering of 917,700 trust units (the "Offering Units") at a price of US$5.00 per unit (the "Offering"). The Offering raised gross proceeds of US$4,588,500. The units of the REIT (the "Units") have been conditionally approved for listing on the TSX Venture Exchange (the "TSXV") and will trade under the symbol "NHT" upon the satisfaction of final listing requirements of the TSXV. Acting as agent for the Offering was Raymond James Ltd.
In connection with the Offering, the REIT acquired a portfolio of 11 full-service and select-service hotel properties located across five states and six major metropolitan markets in the United States (the "Initial Portfolio").
On closing of the Offering, certain unitholders of the REIT (the "NexPoint Holders") who are principals and affiliates of the REIT's advisor, NexPoint Real Estate Advisors VI, L.P., retain an aggregate of approximately 38.2% ownership interest in the REIT (determined as if all redeemable securities are redeemed for Units). The NexPoint Holders together own 10,761,064 Units and 202,818 Class B units of the REIT's operating partnership, NHT Operating Partnership, LLC, which are economically equivalent to and redeemable for Units on a one-for-one basis. Further information regarding the principal unitholders of the REIT is set out in the REIT's final prospectus dated March 27, 2019.
The REIT initially intends to adopt a distribution policy pursuant to which the REIT will make quarterly cash distributions to unitholders equal to, on an annual basis, approximately 65% of estimated core funds from operations. Pursuant to this distribution policy, distributions will be paid to unitholders of record at the close of business on the applicable distribution record date determined by the trustees of the REIT from time to time.
Goodmans LLP is acting as Canadian counsel to the REIT and Winston & Strawn LLP and Baker & McKenzie LLP (with respect to tax matters) are acting as U.S. counsel to the REIT. Blake, Cassels & Graydon LLP is acting as counsel for Raymond James Ltd.
No securities regulatory authority has either approved or disapproved the contents of this news release. The Units have not been and will not be registered under the United States Securities Act of 1933 (the "U.S. Securities Act"), as amended, or any state securities laws, and may not be offered, sold or delivered, directly or indirectly, in the United States or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the U.S. Securities Act). Accordingly, the Units may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws.
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.
About NexPoint Hospitality Trust
NexPoint Hospitality Trust is a newly-created, unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring a portfolio of 11 hospitality assets located in the United States, to raise capital to acquire additional U.S.-located hospitality assets that meet its investment objectives and criteria and to own, renovate and operate its portfolio of income-producing hotel properties. The REIT is externally managed by NexPoint Real Estate Advisors VI, L.P.
This news release may contain forward-looking statements (within the meaning of applicable securities laws) relating to the business of the REIT. Forward-looking statements are identified by words such as "believe", "anticipate", "project", "expect", "intend", "plan", "will", "may", "estimate" and other similar expressions. These statements are based on the REIT's expectations, estimates, forecasts and projections and include, without limitation, statements regarding the trading of the Units, the adoption of a distribution policy and intended quarterly distributions of the REIT. The forward-looking statements in this news release are based on certain assumptions, including without limitation that the REIT will have sufficient cash to pay its distributions and the REIT will receive final approval from the TSXV. They are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed under the heading "Risk Factors" in the REIT's final prospectus available at www.sedar.com. There can be no assurance that forward-looking statements will prove to be accurate as actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, these forward-looking statements are made as of the date of this news release and, except as expressly required by applicable law, the REIT assumes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
For further information, please contact:
Investor Relations Manager
NexPoint Hospitality Trust
SOURCE NexPoint Hospitality Trust, Inc.