Ashford Hospitality may buy back convertible preferreds issued in private placement

By Angela McDaniels

Tacoma, Wash., Jan. 20 - Ashford Hospitality Trust, Inc. said its board of directors authorized a $200 million repurchase plan authority that includes its series B-1 cumulative convertible redeemable preferred stock, which was issued in a $75 million private placement in January 2005.

The repurchase plan also covers the repurchase of common stock, series A cumulative preferreds and series D cumulative preferreds and the prepayment of other outstanding debt obligations.

At the end of the fourth quarter, there were 7,447,865 of the series B-1 preferreds outstanding, according to an 8-K filing with the Securities and Exchange Commission.

The company plans to fund any repurchases with proceeds from asset sales, cash flow from operations, existing cash on the balance sheet, repayment of loans made to third parties and other sources.

Ashford Hospitality Trust is a Dallas-based self-administered real estate investment trust focused on investing in the hospitality industry.

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