By Sheri Kasprzak
Atlanta, Jan. 4 - Ashford Hospitality Trust Inc. said it plans to sell up to $75 million in preferred stock in a private placement.
The company plans to sell up to $75 million in series B cumulative convertible preferreds to Security Capital Preferred Growth Inc.
Under the terms of the agreement, Security Capital may buy up to 5,162,000 series B-1 preferreds and up to 2,285,865 series B-2 preferreds at a price of $10.07 each.
On Dec. 30, Security Capital bought 993,049 series B-1 preferreds for a total of $10,000,003.
The preferreds are convertible into common shares at a price obtained by dividing $10.07 by the conversion price in effect at the time of conversion. The initial conversion price is $10.07.
Ashford Hospitality, based in Dallas, is a real estate investment trust that owns hotels and hotel mortgages.
| Issuer: | Ashford Hospitality Trust Inc.
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| Issue: | Series B cumulative convertible preferreds
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| Amount: | $75 million
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| Shares: | 5,162,000 (maximum)
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| Conversion price: | $10.07
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| Warrants: | No
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| Investors: | Security Capital Preferred Growth Inc.
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| Announcement date: | Jan. 4
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| Stock price: | $10.53 at close Jan. 4
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