Business Context and Reporting Period
Company: Ashford Hospitality Trust, Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: February 21, 2012
Event: Entry into a Material Definitive Agreement regarding the amendment of the Company's Credit Agreement.
Key Financial Metrics
This filing does not report revenue, profit, cash flow, margins, or liquidity ratios. It focuses exclusively on debt facility terms.
| Metric | Value/Status |
|---|---|
| Original Maximum Revolving Commitment | $150 million |
| Original Increase Request Limit | $45 million |
| New Maximum Revolving Commitment (Potential) | $225 million |
| New Increase Request Limit | $120 million |
| Current Maximum Revolving Commitment (Post-Exercise) | $145 million |
Material Changes Versus Prior Period
- Amendment of Credit Agreement: On February 21, 2012, the Company amended its Credit Agreement dated September 26, 2011.
- Increased Capacity: The right to request increases in revolving commitments was raised from $45 million to $120 million.
- Higher Aggregate Limit: The potential aggregate loan commitments were increased from $150 million to $225 million.
- Immediate Exercise: The Company immediately exercised its right to increase the revolving commitment by $40 million, raising the current maximum to $145 million.
Guidance, Outlook, and Risks
The filing contains no forward-looking guidance, management commentary on future performance, or specific risk factors beyond the modification of debt terms. The primary contingency noted is the Company's ability to draw upon the increased credit facility up to the new limits.
Important Facts for Investors to Verify
- Confirm the total outstanding debt balance under the amended Credit Agreement to assess leverage ratios.
- Verify the interest rate terms and covenants associated with the increased $120 million expansion option.
- Review the Company's capitalization table to understand the impact of the $40 million immediate increase on total liquidity.
- Check subsequent filings for actual drawdowns against the new $145 million committed limit.