Ashford Hospitality Trust, Inc. (AHT) said Wednesday that it has commenced a follow-on public offering of 11 million shares of common stock.
The company expects to grant the underwriters of the offering a 30-day option to purchase up to an additional 1.65 million shares of common stock.
Ashford said it plans to use the net proceeds of the offering to effect the planned spin-off of Ashford Hospitality Prime, Inc. that the company announced on June 17, including, because of the way the spin-off is structured, to pay the common stock dividend just for this new share issue for the quarter ending June 30.
If the spin-off is not effected, Ashford plans to use the net proceeds of the offering for other general corporate purposes, including, without limitation, financing future hotel-related investments, capital expenditures, working capital and repayment of debt or other obligations.
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