W2007 Grace Acquisition I, Inc. (fka WGCBP)

[Enterprising Investor]

W2007 Grace Acquisition I, Inc. and WNT Holdings, LLC Complete Sale of 116 Hotels for $1.808 Billion (2/27/15)

IRVING, Texas--(BUSINESS WIRE)--W2007 Grace Acquisition I, Inc. (“Grace”) and WNT Holdings, LLC (“WNT”) announced today that certain of their subsidiaries have completed the sale of 116 hotels to affiliates of American Realty Capital Hospitality Trust, Inc. (“ARC Hospitality”) for a combined purchase price of approximately $1.808 billion. ARC Hospitality is a publicly registered, non-traded real estate investment trust. In connection with the sale, ARC Hospitality assumed $903.9 million of existing financing secured by the 96 hotels owned by WNT’s subsidiaries and the remaining 20 hotels owned by Grace’s subsidiaries were delivered unencumbered by any financing. In addition to the debt assumption, the $1.808 billion purchase price includes receipt of (i) $99.8 million of preferred equity interests in the entity controlled by ARC Hospitality that acquired the 20 hotels from Grace’s subsidiaries and (ii) $347.3 million of such preferred equity interests in the entity that acquired the 96 hotels from WNT’s subsidiaries. WNT now owns a portfolio of 10 hotels for which it is evaluating various strategic alternatives. Grace no longer owns any hotels but continues to hold a 3% interest in WNT and the $99.8 million of preferred equity interests referred to above. Grace does not expect to commence payment of dividends or to otherwise distribute the net proceeds from the sale transaction, but instead expects to use the net proceeds for general corporate purposes, including satisfaction of liabilities, and to retire outstanding debt.

Goldman, Sachs & Co. and Deutsche Bank Securities Inc. acted as financial advisors to the selling subsidiaries. RCS Capital, the investment banking and capital markets division of Realty Capital Securities, LLC, a subsidiary of RCS Capital Corporation (NYSE: RCAP), acted as financial advisor to ARC Hospitality. Ladder Capital Finance, LLC and Deutsche Bank AG, New York Branch provided ARC Hospitality financing in connection with the acquisition.

http://www.businesswire.com/news/home/20150227006102/en/W2007-Grace-Acquisition-WNT-Holdings-LLC-Complete#.VPD4o4ktGUk