REIT Adjusts Credit Agreement with BB&T

MHI Hospitality Corp., a real estate investment trust based in Williamsburg, Va., has entered into an amendment to its credit agreement with Branch Banking & Trust Co., which fixes the interest rate spread for variable Libor-based interest rate loans at 4% and sets a Libor floor at 0.75%. Furthermore, the facility has become nonrevolving. The agreement also eliminates MHI's ability to borrow any further funds under the facility or re-borrow previously repaid funds. There is also an option to extend the maturity date to May 8, 2012 if certain valuation and other criteria are met. MHI will be required to make mandatory prepayments based on excess cash flow and if it raises equity within certain parameters. The agreement modifies the methodology used to value the company's existing hotel properties and increases the percentage of a hotel property's value available for compliance purposes, except for the Tampa property.