MHI Hospitality Corporation Completes $30.0 Million Secured Debt Financing

WILLIAMSBURG, Va.--(BUSINESS WIRE)--MHI Hospitality Corporation (NASDAQ: MDH) (“MHI” or the “Company”) today announced that it has successfully executed a new $30.0 million secured loan with TD Bank N.A., collateralized by a first mortgage on the Hilton Philadelphia Airport Hotel in Philadelphia, Pennsylvania. The loan carries a floating interest rate of the 30-day LIBOR rate plus 3.0%, with a 50 basis point floor on LIBOR, and amortizes on a 25 year schedule. The maturity date is August 30, 2014 with an extension option until March 1, 2017, contingent upon the extension or acceptable replacement of the Hilton Worldwide license agreement for the hotel. Proceeds from the loan were used to pay off the remaining indebtedness under the Company’s existing syndicated credit facility, to repay a portion of the Company’s indebtedness under its Note Agreement with Essex Equity, and for working capital purposes. With this transaction, the Company’s syndicated credit facility is now terminated and the Company’s Crowne Plaza Tampa Westshore Hotel is released therefrom and unencumbered.