MHI Hospitality Corporation Completes $14.3 Million Secured Debt Financing

WILLIAMSBURG, Va.--(BUSINESS WIRE)--MHI Hospitality Corporation (NASDAQ: MDH) (the “Company”) today announced that it has successfully executed a new $14.3 million secured loan with Fifth Third Bank, collateralized by a first mortgage on the Crowne Plaza Jacksonville Riverfront Hotel in Jacksonville, Florida. The loan carries a floating interest rate of the 30-day LIBOR rate plus 3.0% and amortizes on a 25-year schedule. The maturity date is July 10, 2015 with an extension option until July 10, 2016. The loan also contains an earn-out feature which allows for an additional $3.0 million in proceeds to be funded during the term of the loan, contingent upon satisfaction of certain debt coverage and loan-to-value covenants. Proceeds from the loan were used to pay off the Hotel’s existing $14.0 million mortgage, which carried a fixed interest rate of 8.0%, and to pay closing costs related to the transaction.