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InnVest Hotels acquires The Algonquin Resort St. Andrews by‑the‑Sea, Autograph Collection and The Algonquin Golf Course
InnVest Hotels has acquired The Algonquin Resort St. Andrews by-the-Sea, Autograph Collection and The Algonquin Golf Course.
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NexPoint Hospitality Trust announces undertaking regarding amendments to COVID loans
NexPoint Hospitality Trust has announced at the request of the TSX Venture Exchange, that it has provided an undertaking to amend the convertible promissory notes issued to NexPoint Real Estate Opportunities, LLC and Highland Income Fund during the pandemic to reduce the conversion term to five years from the date of issuance; establish a minimum acceptable conversion price based on market prices at the time of each particular advance; and 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, 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.
