LUXURBAN HOTELS INC.: debt financing — LuxUrban Hotels secures up to $10M non-dilutive note from Chairman/Co-CEO at 1% interest

LUXURBAN HOTELS INC.

Unsecured advancing term promissory note of up to $10 million from THA Holdings LLC (Brian Ferdinand, Chairman/Co-CEO and largest stockholder).
Note bears 1% annual interest, matures November 16, 2026; prepayable at Company’s option with Board approval, no penalty.
Funded via sales of common stock owned by Ferdinand under Rule 144 or other exemptions; proceeds less taxes fund the note.
Proceeds used for growth capital: leasing additional hotel units and building density in existing markets.
Company reiterates Note is not required to achieve previously issued 2023 and 2024 guidance on net rental revenue, EBITDA, hotel rooms.

Key facts

Extracted from this filing and checked against the source text.

Debt Financings SEC 8-K Item 2.03/2.04 confidence 0.9

LUXURBAN HOTELS INC. incurred term loan of up to an aggregate principal amount of $10,000,000 with THA Holdings LLC at 1% per annum maturing November 16, 2026.

Instrument: term loan
Principal: up to an aggregate principal amount of $10,000,000
Counterparty: THA Holdings LLC
Rate: 1% per annum
Maturity: November 16, 2026
Event: incurrence

Exact text from the filing

advancing term promissory note (the “Note”). Under the Note, the Company is able to borrow, and the Lender has committed to lend, up to an aggregate principal amount of $10,000,000 (the “Initial Principal Amount”) to be funded in increments of $1,000,000 upon the Company’s request by the sale, from time to time, of shares of the Company’s common stock, par

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Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.9

LUXURBAN HOTELS INC. entered into Note with THA Holdings LLC valued at up to an aggregate principal amount of $10,000,000 (effective 2023-11-17).

Action: entry
Agreement: credit facility
Counterparty: THA Holdings LLC
Value: up to an aggregate principal amount of $10,000,000
Effective: 2023-11-17

Exact text from the filing

On November 17, 2023, LuxUrban Hotels Inc. (the “Company” or “we” and related pronouns), entered into a non-dilutive financing agreement with THA Holdings LLC, an entity controlled and operated by the Company’s Chairman, Co-Chief Executive Officer (“Co-CEO”) and largest stockholder, Brian Ferdinand (the “Lender”), pursuant to which the Company agreed to issue to the Lender an unsecured, advancing term promissory note (the “Note”).

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Source: SEC EDGAR

accession 0001829126-23-007529

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