Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or
“Apple Hospitality”) today announced that it successfully
refinanced its primary unsecured credit facility, further enhancing
the strength and flexibility of its balance sheet. The Company
entered into an amendment and restatement of its existing unsecured
$850 million credit facility (the “Credit Facility”) on July 25,
2022, increasing the total Credit Facility to approximately $1.2
billion and extending the Company’s staggered maturity schedule
while achieving improved pricing terms across the total Credit
Facility.
“We are pleased to further enhance the strength and financial
flexibility of our balance sheet and bolster our already strong
liquidity position by refinancing our primary Credit Facility,”
commented Liz Perkins, Senior Vice President and Chief Financial
Officer of Apple Hospitality REIT. “We greatly appreciate the
support of our lenders and their continued confidence in our
strategy and the underlying fundamentals of our business. Through
the credit agreement amendment and restatement, we upsized our
revolving credit facility and term loans, providing the Company
with greater access to liquidity for strategic growth and the
opportunity to further reduce our already conservative secured debt
exposure. With the increased size, extended maturities and more
attractive pricing of the amended facility, the Company is
incredibly well positioned to enhance shareholder value in any
macroeconomic environment.”
The Credit Facility is comprised of a term loan of $275 million
with a maturity date of July 25, 2027; a term loan of up to $300
million with a maturity date of January 31, 2028, including $150
million available via a delayed draw option until 180 days from
closing; and a revolving credit facility of $650 million with an
initial maturity date of July 25, 2026, which may be extended up to
one year subject to certain conditions. The updates under the total
Credit Facility provide for additional capacity of $150 million
under the term loans, additional capacity of $225 million under the
revolving credit facility, an extension of the maturities of each
of the loans under the total facility and improved pricing terms.
The credit agreement includes an accordion feature in which the
amount of the total Credit Facility may be increased from
approximately $1.2 billion to $1.5 billion.
The terms of the amended and restated credit agreement are
generally similar to the Company’s previous $850 million credit
agreement. The amendment includes: a transition in reference rate
from LIBOR to SOFR; a decrease in margin ranging from 1.35% to
2.25% over an adjusted SOFR rate, depending upon the Company’s
leverage ratio, as calculated under the terms of the credit
agreement; and the same unused fee on the revolving credit facility
at a per annum fee of 0.20% or 0.25%, depending on usage.
At closing, the Company borrowed $475 million under the term
loans and used the proceeds to repay the $425 million outstanding
under the term loans of the previous credit facility and $50
million outstanding under the current revolving credit
facility.
The Credit Facility was arranged by BofA Securities, Inc.,
KeyBanc Capital Markets, Wells Fargo Securities, LLC, and U.S. Bank
National Association, as joint lead arrangers and joint
bookrunners.
About Apple Hospitality REIT,
Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded
real estate investment trust (“REIT”) that owns one of the largest
and most diverse portfolios of upscale, rooms-focused hotels in the
United States. Apple Hospitality’s portfolio consists of 219 hotels
with more than 28,700 guest rooms located in 86 markets throughout
36 states. Concentrated with industry-leading brands, the Company’s
portfolio consists of 94 Marriott-branded hotels, 119
Hilton-branded hotels, four Hyatt-branded hotels and two
independent hotels. For more information, please visit
www.applehospitalityreit.com.
Forward-Looking Statements
Disclaimer
This press release contains forward-looking statements within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended. Forward-looking statements are typically identified by use
of statements that include phrases such as “may,” “believe,”
“expect,” “anticipate,” “intend,” “estimate,” “project,” “target,”
“goal,” “plan,” “should,” “will,” “predict,” “potential,”
“outlook,” “strategy,” and similar expressions that convey the
uncertainty of future events or outcomes. Such statements involve
known and unknown risks, uncertainties, and other factors which may
cause the actual results, performance, or achievements of the
Company to be materially different from future results, performance
or achievements expressed or implied by such forward-looking
statements.
Currently, one of the most significant factors that could cause
actual outcomes to differ materially from the Company’s
forward-looking statements continues to be the adverse effect of
COVID-19, including resurgences and variants, on the Company’s
business, financial performance and condition, operating results
and cash flows, the real estate market and the hospitality industry
specifically, and the global economy and financial markets
generally. The significance, extent and duration of the continued
impacts caused by the COVID-19 pandemic on the Company will depend
on future developments, which are highly uncertain and cannot be
predicted with confidence at this time, including the scope,
severity and duration of the pandemic, the extent and effectiveness
of the actions taken to contain the pandemic or mitigate its
impact, the efficacy, acceptance and availability of vaccines, the
duration of associated immunity and efficacy of the vaccines
against variants of COVID-19, the potential for additional hotel
closures/consolidations that may be mandated or advisable, whether
based on increased COVID-19 cases, new variants or other factors,
the slowing or potential rollback of “reopenings” in certain
states, and the direct and indirect economic effects of the
pandemic and containment measures, among others. Moreover,
investors are cautioned to interpret many of the risks identified
under the section titled “Risk Factors” in the Company’s Annual
Report on Form 10-K for the fiscal year ended December 31, 2021 as
being heightened as a result of the ongoing and numerous adverse
impacts of COVID-19. Additional factors include, but are not
limited to, the ability of the Company to effectively acquire and
dispose of properties and redeploy proceeds; the anticipated timing
and frequency of shareholder distributions; the ability of the
Company to fund capital obligations; the ability of the Company to
successfully integrate pending transactions and implement its
operating strategy; changes in general political, economic and
competitive conditions and specific market conditions; reduced
business and leisure travel due to travel-related health concerns,
including the COVID-19 pandemic or an increase in COVID-19 cases or
any other infectious or contagious diseases in the U.S. or abroad;
adverse changes in the real estate and real estate capital markets;
financing risks; changes in interest rates; litigation risks;
regulatory proceedings or inquiries; and changes in laws or
regulations or interpretations of current laws and regulations that
impact the Company’s business, assets or classification as a REIT.
Although the Company believes that the assumptions underlying the
forward-looking statements contained herein are reasonable, any of
the assumptions could be inaccurate, and therefore there can be no
assurance that such statements included in this press release will
prove to be accurate. In light of the significant uncertainties
inherent in the forward-looking statements included herein, the
inclusion of such information should not be regarded as a
representation by the Company or any other person that the results
or conditions described in such statements or the objectives and
plans of the Company will be achieved. In addition, the Company’s
qualification as a REIT involves the application of highly
technical and complex provisions of the Internal Revenue Code of
1986, as amended. Readers should carefully review the risk factors
described in the Company’s filings with the Securities and Exchange
Commission, including but not limited to those discussed in the
section titled “Risk Factors” in the Company’s Annual Report on
Form 10-K for the fiscal year ended December 31, 2021. Any
forward-looking statement that the Company makes speaks only as of
the date of this press release. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements or cautionary factors, as a result of new information,
future events, or otherwise, except as required by law.
For additional information or to receive press
releases by email, visit www.applehospitalityreit.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220727005756/en/
Apple Hospitality REIT, Inc. Kelly Clarke, Vice President,
Investor Relations 804‐727‐6321 kclarke@applereit.com
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