NexPoint Hospitality Trust Announces Grant of Deferred Units and Update on Liquidity Solutions

DALLAS and TORONTO, June 28, 2021 /CNW/ -- NexPoint Hospitality Trust, ("NHT"¹), (TSX-V: NHT.U) announced today that, in lieu of cash trustees' fees earned since January 1, 2019 and pursuant to the REIT's matching grants, it has issued an aggregate of 339,687 deferred units (the "Deferred Units") to the independent trustees of NHT, pursuant to NHT's omnibus equity incentive plan. The Deferred Units vested immediately upon grant.

Additionally, NHT announced that a subsidiary of NHT has, between April 2021 and June 2021, issued convertible notes (the "Notes") in the aggregate principal amount of US$13.1 million (the "Liquidity Transactions") to affiliates of NHT's external advisor.

The Notes bear interest at a rate of 2.25% per annum, and are repayable in membership interests ("Membership Interests") of NHT's operating subsidiary, NHT Operating Partnership, LLC, which are redeemable for trust units of NHT ("Trust Units") at the option of NHT in its sole discretion. The approval of the TSX Venture Exchange will be required prior to any conversion of Membership Interests into Trust Units. NHT used the proceeds of the Liquidity Transactions for general working capital purposes.  Management believes the Liquidity Transactions will further strengthen NHT's balance sheet and liquidity profile to better position itself as the hospitality industry continues to rebound from the impact of the COVID-19 pandemic.

Each of the Liquidity Transactions constituted a related party transaction as defined in Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Liquidity Transactions were completed in reliance on (i) an available exemption from the formal valuation requirement of MI 61-101 provided in paragraph (a) of Section 5.5 of MI 61-101 and (ii) an available exemption from the minority shareholder requirement of MI 61-101 provided in paragraph (a) of Section 5.7(1) of MI 61-101.

About NHT
NexPoint Hospitality Trust is a publicly traded real estate investment trust, with its Units listed on the TSX Venture Exchange under the ticker NHT.U. and NHT is focused on acquiring, owning and operating well-located hospitality properties in the United States that offer a high current yield and in many cases are underperforming assets with the potential to increase in value through investments in capital improvements, a market-based recovery, brand repositioning, revenue enhancements, operational improvements, expense inefficiencies, and exploiting excess land or underutilized space. NHT owns 11 branded properties sponsored by Marriott, Hilton and Intercontinental Hotels Group, located across the U.S. NHT is externally advised by NexPoint Real Estate Advisors VI, L.P.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact: 

Jackie Graham
Investor Relations
[email protected]

Chief Financial Officer
Brian Mitts
[email protected]

Media Inquiries
[email protected]

¹ In this release, "we," "us," "our," and "NHT" each refer to NexPoint Hospitality Trust.

SOURCE NexPoint Hospitality Trust