UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM
CURRENT REPORT
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ITEM 1.01 ENTRY INTO A MATERIAL DEFINITIVE AGREEMENT
A-1 Line of Credit Amendment
As previously disclosed, Lodging Fund REIT III OP, LP (the “Operating Partnership”), which is the operating partnership subsidiary of Lodging Fund REIT III, Inc. (the “Company”), entered into a $5.0 million revolving line of credit loan agreement dated as of August 9, 2022 (the “A-1 Line of Credit”) with Legendary A-1 Bonds, LLC (the “A-1 Lender”). The A-1 Lender is an affiliate of Legendary Capital REIT III, LLC, the Company’s external advisor (the “Advisor”), which is owned by Norman Leslie, a director and executive officer of the Company and principal of the Advisor, and Corey Maple, a director of the Company and a principal of the Advisor. As previously disclosed, on December 21, 2022, the A-1 Line of Credit was amended to extend the maturity date of the A-1 Line of Credit from December 31, 2022 to December 31, 2023 and increase the A-1 Line of Credit to $7.5 million, on January 12, 2023, the A-1 Line of Credit was amended to increase the A-1 Line of Credit to $10.0 million, on April 18, 2023, the A-1 Line of Credit was amended to increase the A-1 Line of Credit to $13.3 million, and on March 27, 2024, the A-1 Line of Credit was amended to increase the A-1 Line of Credit to $15.5 million. On December 20, 2024, the Operating Partnership and the A-1 Lender entered into a Fifth Amendment to the Revolving Line of Credit Loan Agreement (the “Fifth Amendment”) in connection with the A-1 Line of Credit. The Fifth Amendment extended the maturity date of the A-1 Line of Credit to December 31, 2027, increased the interest rate to 17.5% per annum, and increased the A-1 Line of Credit to $20.0 million. Through the Fifth Amendment, the A-1 Line of Credit is secured by 2,000,000 unissued common limited partnership units of the Operating Partnership. No other changes were made to the A-1 Line of Credit as a result of the Fifth Amendment. As of December 27, 2024, $14.0 million is outstanding under the A-1 Line of Credit.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Company has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
LODGING FUND REIT III, INC. | |||
Dated: December 27, 2024 | BY: | /s/ Samuel C. Montgomery | |
Samuel C. Montgomery | |||
Chief Financial Officer | |||