Apple Hospitality borrows remaining $245 million under revolver

By Wendy Van Sickle

Columbus, Ohio, March 25 – Apple Hospitality REIT, Inc. borrowed $245 million in two draws on its $425 million revolving credit facility last week, according to an 8-K filing with the Securities and Exchange Commission.

The REIT borrowed $100 million under the revolver on March 19 and another $145 million on March 20. After these two borrowings, the revolver is fully drawn.

Borrowings bear interest at Libor plus 140 basis points to 225 bps, depending on the company’s leverage ratio.

Bank of America, NA is the administrative agent. The revolver matures on July 27, 2022 and may be extended for up to one year.

The company increased its borrowings under the revolver as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 virus. Borrowings may be used in the future for general corporate or other purposes.

The REIT had about $445 million of cash and cash equivalents on its balance sheet as of Tuesday.

Apple Hospitality is a real estate investment trust based in Richmond, Va.

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