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UNITED STATES |
SECURITIES AND EXCHANGE COMMISSION |
Washington, D.C. 20549 |
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FORM 8-K |
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CURRENT REPORT |
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Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
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Date of Report (Date of earliest event reported): October 19, 2011 |
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APPLE REIT EIGHT, INC. |
(Exact name of registrant as specified in its charter) |
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Virginia |
000-53175 |
20-8268625 |
(State or other jurisdiction |
(Commission File Number) |
(I.R.S. Employer |
of incorporation) |
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Identification Number) |
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814 East Main Street, Richmond, Virginia |
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23219 |
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(Address of principal executive offices) |
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(Zip Code) |
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(804) 344-8121
(Registrants
telephone number, including area code)
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: |
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
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Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Apple REIT Eight, Inc. (which is referred to below as the Company) is filing this report in accordance with Item 8.01 of Form 8-K.
Item 8.01. Other Events.
On October 19, 2011, the Company, through four of its wholly owned subsidiaries, entered into four secured loan agreements (the Loan Agreements) with Cantor Commercial Real Estate Lending, L.P. Each loan is secured by one of the Companys hotels. The hotels securing the Loan Agreements are: the two Courtyard® by Marriott® hotels in Virginia Beach, Virginia, the Courtyard® by Marriott® hotel in Charlottesville, Virginia and the Courtyard® by Marriott® hotel in Carolina Beach, North Carolina. Interest will be payable monthly on the outstanding balance of each loan at an annual rate 6.015%. The Loan Agreements mature in October 2016 and will amortize based on a 25 year term with a balloon payment due at maturity.
At closing the Company used the total proceeds of the loans ($60 million) to extinguish its $25 million term loan with Branch Banking and Trust Company, to reduce the outstanding balance on its $75 million line of credit and to pay transaction costs.
The Loan Agreements contain representations, financial and other affirmative and negative covenants, events of default and remedies typical for these types of Loan Agreements.
The foregoing summary does not purport to be a complete statement of the terms and conditions under the Loan Agreements.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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Apple REIT Eight, Inc. |
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By: |
/s/ Glade M. Knight |
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Glade M. Knight, |
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Chief Executive Officer |
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October 24, 2011 |
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