Apple REIT Eight gets $100 million two-year credit facility from Branch Banking and Trust

By Sara Rosenberg

New York, Nov. 3 - Apple REIT Eight Inc. closed on a $100 million two-year credit facility, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

Branch Banking and Trust Co. is the lead bank on the deal that was completed on Oct. 28.

The facility consists of a $75 million unsecured revolver and a $25 million term loan, with both tranches priced at Libor plus 225 basis points with a 1.25% Libor floor.

Financial covenants include minimum tangible net worth, maximum ratio of debt to net worth, minimum debt service ratio and minimum ratio of operating income to debt service and dividends.

Security is two of the company's hotels.

At closing, the company borrowed approximately $73.2 million under the facility to repay its existing unsecured loan and for transaction costs. The remaining balance will be used for general corporate purposes, including capital expenditures, redemptions and distributions.

Apple REIT is a Richmond, Va.-based real estate investment trust focused on the acquisition and ownership of high-quality income-producing real estate.

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