Apple Hospitality REIT, Inc. 8-K

What Happened
Apple Hospitality REIT, Inc. (APLE) announced on its Form 8-K that it entered into a Fourth Amended and Restated Credit Agreement on July 23, 2026, replacing its prior credit agreement. The amendment increases the company’s senior unsecured revolving credit facility to $700 million, extends maturity dates for its revolving and term loan facilities (through 2030–2032 depending on the facility), and preserves outstanding borrowings of approximately $14 million on the revolver, $275 million on the Term A‑1 Loan and $300 million on the Term A‑2 Loan as of the closing. The company also amended a separate Seven‑Year Term Loan with PNC (closed July 24, 2026), increasing that facility from $130 million to $160 million and extending its maturity to July 24, 2033.

Key Details

• Revolver increased from $650M to $700M; scheduled Revolver maturity extended from July 25, 2026 to July 24, 2030 (with options to extend further).
• Term A‑1 Loan maturity extended from July 25, 2027 to July 24, 2031 ($275M outstanding); Term A‑2 Loan maturity extended from Jan 31, 2028 to Jan 23, 2032 ($300M outstanding).
• Company may increase total commitments and/or add incremental term loans up to $1.75 billion (subject to lender commitment); up to $25M of the revolver can be used for letters of credit.
• Pricing: Revolver interest at SOFR + 140–230 bps (or base rate + 40–130 bps); Term loans at SOFR + 135–225 bps (or base rate + 35–125 bps); unused commitment fee of 20–25 bps. Lower rates/facility fee available if APLE achieves an investment‑grade rating.
• Key financial covenants include: total indebtedness to EBITDA ≤ 7.25x; secured indebtedness to total assets ≤ 45%; adjusted EBITDA to fixed charges ≥ 1.5x; unencumbered NOI to unsecured interest expense ≥ 2.0x; net unsecured indebtedness to unencumbered asset value ≤ 60% (65% for limited temporary exceptions); secured recourse indebtedness to assets ≤ 10%.
• Separate July 24 amendment: Seven‑Year Term Loan (PNC) increased to $160M, maturity July 24, 2033 (incremental $30M funded at closing); includes accordion to $300M and pricing of SOFR + 170–265 bps. Conforming amendments were also made to two other unsecured term loans (amounts and maturities unchanged).

Why It Matters
This refinancing extends APLE’s debt maturities and increases near‑term liquidity flexibility, reducing the amount of debt coming due in 2026–2028 and giving the company room to borrow, refinance or issue letters of credit under a larger revolver. The amended covenants and pricing tie borrowing costs to APLE’s leverage and allow potential improvement if the company attains an investment‑grade rating. For investors, the action reduces short‑term refinancing risk but maintains leverage and covenant tests that the company must meet to access the revolver and other facilities. A press release announcing the transactions was issued July 28, 2026 and the amended credit agreement is filed as an exhibit to the 8‑K.