Business Context and Reporting Period
Company: Ashford Hospitality Trust, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: September 10, 2004
Event: Regulation FD Disclosure regarding the acquisition of a mezzanine loan.
Key Financial Metrics
This filing reports a specific transaction rather than periodic financial results. Key metrics related to the transaction include:
- Transaction Value: $11.0 million mezzanine loan purchase.
- Underlying Asset: The Westin Westminster in Westminster, Colorado (borrower: Inland Pacific LLC).
- Interest Rate: Stated rate of 14%; fixed at 12% for the first two years with a share of available cash flow up to 14%.
- Maturity: September 2011 (7-year term).
- Payment Structure: Interest-only throughout the term.
- Origination Fee: 1% received by the Company.
Material Changes
The filing discloses a material change in the Company's investment portfolio through the closing of the $11.0 million loan. No comparative financial data (revenue, profit, or cash flow) for prior periods is provided in this document.
Outlook, Risks, and Contingencies
Management Commentary: The Company executed the purchase to expand its loan portfolio with a high-yield asset secured by a hospitality property.
Prepayment Risk: The loan may be prepaid in whole or in part, subject to a prepayment penalty.
Contingencies: The filing does not disclose specific legal contingencies or unusual items beyond the standard terms of the loan agreement.
Investor Verification Checklist
- Verify the creditworthiness of the borrower, Inland Pacific LLC.
- Confirm the occupancy and revenue performance of The Westin Westminster property.
- Review the specific terms of the prepayment penalty to assess yield protection.
- Check subsequent filings for the impact of this $11.0 million investment on the Company's overall liquidity and leverage ratios.