Apple Hospitality REIT extends debt maturities to 2029
The hotel real estate investment trust increased its Main Credit Facility capacity to approximately $1.3 billion.
Apple Hospitality REIT (APLE), the hotel real estate investment trust, restructured its credit facilities to extend its debt runway. The company focused on liquidity expansion and maturity extensions to insulate its balance sheet from near-term refinancing risks.
As part of its capital management strategy, the company increased the total borrowing capacity of its Main Credit Facility from $1.2 billion to approximately $1.3 billion. This facility includes an accordion feature that allows for further increases up to $1.75 billion.
Apple Hospitality also adjusted its term loan structures. The company increased the Seven-Year Term Loan amount from $130 million to $160 million. This loan includes an accordion feature allowing for increases up to $300 million.
To reduce immediate repayment pressure, the company extended the maturity date of the Seven-Year Term Loan by seven years to July 24, 2033. These actions extended the weighted average maturity of total consolidated debt to nearly five years.
These adjustments resulted in no significant debt maturities until 2029.
Apple Hospitality also renegotiated its borrowing costs. The company improved pricing terms on the Main Credit Facility to a range of SOFR plus 1.35% to 2.30%. It subsequently conformed the pricing on two other unsecured credit facilities totaling $470 million to match these terms.