MHI Hospitality Corporation Announces Partial Redemption of Preferred Stock; Amends Raleigh Mortgage

Before you go, we thought you'd like these...
Before you go close icon

MHI Hospitality Corporation Announces Partial Redemption of Preferred Stock; Amends Raleigh Mortgage Loan

WILLIAMSBURG, Va.--(BUSINESS WIRE)-- MHI Hospitality Corporation (the "Company") announced today that the Company has entered into an agreement with the holders of the Company's Series A Cumulative Redeemable Preferred Stock (the "Preferred Stock") to redeem 1,901.547 shares of Preferred Stock for an aggregate redemption price of approximately $2.1 million plus the payment of accrued and unpaid cash and stock dividends.

The Company also announced that it amended the original $8.0 million mortgage secured by its Doubletree by Hilton Brownstone-University hotel with its existing lender, Premier Bank, Inc. With the amendment, the loan's principal amount is increased to $10.0 million. The mortgage's interest rate will remain at 5.25% and the loan was amended to remove any prepayment penalty. Per the above, proceeds from the loan amendment were used to redeem a portion of the Preferred Stock. This combined transaction results in a normalized annual interest expense savings of approximately $115,000 to the Company.


AboutMHI Hospitality Corporation

MHI Hospitality Corporation is a self-managed and self-administered lodging REIT focused on the acquisition, renovation, upbranding and repositioning of upscale to upper upscale full-service hotels in the Mid-Atlantic and Southern United States. Currently, the Company's portfolio consists of investments in ten hotel properties, nine of which are wholly-owned and comprise 2,113 rooms. All of the Company's wholly-owned properties operate under the Hilton Worldwide, InterContinental Hotels Group and Starwood Hotels and Resorts brands. The Company has a 25.0 percent interest in the Crowne Plaza Hollywood Beach Resort. MHI Hospitality Corporation was organized in 2004 and is headquartered in Williamsburg, Virginia. For more information please visit www.mhihospitality.com.



MHI Hospitality Corporation
Scott Kucinski
Director - Investor Relations
757-229-5648
scottkucinski@mhihospitality.com

KEYWORDS:   United States  North America  Virginia

INDUSTRY KEYWORDS:

The article MHI Hospitality Corporation Announces Partial Redemption of Preferred Stock; Amends Raleigh Mortgage Loan originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners