Procaccianti Hotel REIT Enters Material Definitive Agreement

TL;DR

PHR just signed a big deal, could be debt or something else important.

AI Summary

Procaccianti Hotel REIT, Inc. entered into a material definitive agreement on June 6, 2024, related to a direct financial obligation. The filing does not specify the exact nature of the agreement or any associated dollar amounts, but it indicates a significant financial event for the company.

Why It Matters

This filing signals a significant financial transaction or obligation for Procaccianti Hotel REIT, which could impact its financial health and future operations.

Risk Assessment

Risk Level: medium — The filing indicates a material definitive agreement and a direct financial obligation, suggesting potential financial risk or opportunity that is not fully detailed.

Key Players & Entities

• PROCACCIANTI HOTEL REIT, INC. (company) — Registrant
• June 6, 2024 (date) — Date of earliest event reported

FAQ

Key Financial Figures

• $26,050,000 — 2018, for a contract purchase price of $26,050,000. The Company financed the Traverse City
• $17,836,000 — d in its offerings and mortgage debt of $17,836,000. On June 6, 2024, PHR TCI, as borrower
• $15,600,000 — Refinancing Loan, the Company borrowed $15,600,000 and issued promissory notes (the "Refin

Filing Documents

• tm2416665d1_8k.htm (8-K) — 32KB
• tm2416665d1_ex10-1.htm (EX-10.1) — 264KB
• tm2416665d1_ex10-2.htm (EX-10.2) — 52KB
• tm2416665d1_ex10-3.htm (EX-10.3) — 67KB
• 0001104659-24-069829.txt ( ) — 667KB
• tmb-20240606.xsd (EX-101.SCH) — 3KB
• tmb-20240606_lab.xml (EX-101.LAB) — 33KB
• tmb-20240606_pre.xml (EX-101.PRE) — 22KB
• tm2416665d1_8k_htm.xml (XML) — 3KB

01 Entry into a Material Definitive Agreement

Item 1.01 Entry into a Material Definitive Agreement. Loan Refinancing As previously disclosed, Procaccianti Hotel REIT, Inc. (the "Company"), through PHR TCI, LLC, a Delaware limited company and wholly-owned subsidiary of the Company ("PHR TCI"), acquired the Hotel Indigo Traverse City located in Traverse City, MI (the "Traverse City Hotel") on August 15, 2018, for a contract purchase price of $26,050,000. The Company financed the Traverse mortgage debt of $17,836,000. On June 6, 2024, PHR TCI, as borrower, and Berkshire Bank, as the lender, entered into a Commercial Real Estate Mortgage Loan Agreement (the "Refinancing Loan"). In connection with the Refinancing Loan, the Company borrowed $15,600,000 and issued promissory notes (the "Refinancing Note") to Berkshire Bank in the same amount. The loan proceeds were primarily used refinance the existing debt on the Traverse City Hotel and to pay for closing costs and such other costs reasonably approved by Berkshire Bank prior to closing. The Refinancing Note bears interest rate at a fixed per annum rate equal to two and one half percent (2.50%) in excess of the yield on United date. Interest only on so much as is advanced and outstanding shall be payable monthly for a period of three (3) years commencing on June 6, 2024 and continuing on the first day of each month thereafter (each such date, a "Payment Date") for the subsequent thirty-five (35) months (the "Interest Only Period"). After the Interest Only Period, principal will be amortized over a three hundred (300) month amortization schedule at a fixed per annum rate of interest equal to two and one half percent (2.50%) in excess of the yield on United States Treasury Securities adjusted to a

03 Creation

Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant. To the extent required by Item 2.03 of Form 8-K, the information set forth under Item 1.01 of this Current Report is hereby incorporated by reference into this Item 2.03.

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits Exhibit No. Description 10.1 Commercial Real Estate Mortgage Loan Agreement, by and between PHR TCI, LLC, and Berkshire Bank, dated June 6, 2024. 10.2 Promissory Note, by and between PHR TCI, LLC, and Berkshire Bank, dated June 6, 2024. 10.3 Limited Guaranty, by and between Procaccianti Hotel REIT, Inc. and Berkshire Bank, dated as of June 6, 2024. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this Report to be signed on its behalf by the undersigned hereunto duly authorized. PROCACCIANTI HOTEL REIT, INC. Date: June 10, 2024 By: /s/ Gregory Vickowski Gregory Vickowski Chief Financial Officer

View Full Filing

View this 8-K filing on SEC EDGAR