Junky lodging REIT Ashford Hospitality (AHT) has made an exchange offer for their outstanding preferred shares.
The company has just executed a 1 for 10 share reverse stock split of their common shares and now wants to pay cash for some of their preferreds.
The company is offering $9.75/share cash for just a small portion of the preferred shares and is looking for consent from holders to convert the balance into common shares. 66 2/3% of holders must agree for this exchange to happen.
Additionally it is conditioned upon the company’s ability to raise $30 million in new money to fund the cash portion of the exchange.