Carey Watermark Investors and Carey Watermark Investors 2 Pause Distributions
March 19, 2020
On March 18, 2020, Carey Watermark Investors Incorporated (“CWI 1”) and Carey Watermark Investors 2 Incorporated (“CWI 2”) announced that, in light of the impact that the COVID-19 outbreak has had on the business of CWI 1 and CWI 2, and the uncertainty as to the ultimate severity and duration of the outbreak and its effects, CWI 1 and CWI 2 would not pay distributions on their common stock in respect of the quarter ended March 31, 2020, in order to enable each company to retain cash and preserve financial flexibility. Distributions in respect of future quarters will be evaluated by the relevant board of directors based on circumstances and expectations existing at the time of consideration. The current suspension of each company’s redemption program will remain in effect, other than in the case of special circumstances redemptions, until the boards determine to lift the suspensions.
In addition, CWI 1 and CWI 2 prepared and publicly filed a supplement, dated March 18, 2020, to their definitive joint proxy statement/prospectus, dated January 13, 2020, relating to the pending merger of the companies and management internalization, in order to revise and update certain information in the definitive joint proxy statement due to the evolving COVID-19 situation. The proxy supplement should be read in conjunction with the definitive joint proxy statement, which itself should be read in its entirety. To the extent that information set forth in the proxy supplement differs from or updates information contained in the definitive joint proxy statement, the information in the proxy supplement supersedes or supplements the applicable information contained in the definitive joint proxy statement.
The relevant documents filed with the SEC are available at www.sec.gov. The joint press release issued by the companies and a letter, dated March 18, 2020, distributed to financial advisors regarding these matters are included as Exhibits 99.1, 99.2, and a copy of the proxy supplement is included as Exhibit 99.3 in the 8-Ks filed by the companies.
Source: SEC
