MHI Hospitality Corporation Completes $8.0 Million, 5.25 Percent, 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 $8.0 million secured loan with Premier Bank, Inc. collateralized by a first mortgage on the Holiday Inn Brownstone Hotel in Raleigh, North Carolina. The loan carries a term of five years with an annualized interest rate of 5.25%. The loan may be extended, at the Company’s option if certain conditions precedent have been satisfied, for an additional five year period at an interest rate of 300 basis points over the 5-year U.S. Treasury Index. Proceeds from the loan will be used to pay down indebtedness under the Company’s existing credit facility.