NexPoint Hospitality Trust Announces Undertaking Regarding Amendments to COVID Loans

DALLAS and TORONTO, June 26, 2023 /CNW/ -- NexPoint Hospitality Trust ("NHT" or the "REIT"), (TSX-V: NHT.U) announced today that, at the request of the TSX Venture Exchange, it has provided an undertaking to amend the convertible promissory notes issued to NexPoint Real Estate Opportunities, LLC and Highland Income Fund (the "Lenders") during the COVID-19 pandemic (the "COVID Loans") to (i) reduce the conversion term to five years from the date of issuance; (ii) establish a minimum acceptable conversion price based on market prices at the time of each particular advance; and (iii) remove the conversion of interest, such that only principal under the COVID Loans is convertible.  For one of the COVID Loans, in an amount of US$8.5 million advanced on February 22, 2022, the REIT has agreed to amend the loan to remove the conversion feature altogether.  As each of the Lenders is a related party of the REIT under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), in order to enter into the amendments to the COVID Loans, the REIT has undertaken to seek disinterested unitholder approval at its 2023 annual and special meeting of unitholders.

The COVID Loans were in the aggregate amount of US$56,165,000.  The proceeds from the COVID Loans were used to fund the REIT's operating expenses and interest and principal payments on outstanding indebtedness during the COVID 19 pandemic to allow the REIT to continue as a going concern. 

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. 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 10 branded properties sponsored by Marriott, Hilton, Hyatt, 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.

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SOURCE NexPoint Hospitality Trust

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