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UNITED STATES |
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SECURITIES AND EXCHANGE COMMISSION |
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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): August 29, 2012 |
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Apple REIT Nine, Inc. |
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(Exact name of registrant as specified in its charter) |
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Virginia |
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000-53603 |
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26-1379210 |
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(State or other jurisdiction |
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(Commission File Number) |
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(I.R.S. Employer |
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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) |
(804) 344-8121
(Registrant’s
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 Nine, 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 August 29, 2012, August 30, 2012 and September 13, 2012, the Company, through three of its wholly owned subsidiaries, entered into three secured loan agreements (the “Loan Agreements”) with Wells Fargo Bank, National Association, secured by three hotel properties for a total of $47.7 million. Scheduled payments of interest and principal are due monthly and each loan will amortize based on a 25 year term with a balloon payment due at maturity. The following table sets forth the hotel property securing each loan and the interest rate, loan origination date, maturity date and principal amount originated under the Loan Agreements.
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Hotel Location |
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Brand |
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Interest |
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Loan |
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Maturity |
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Principal |
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Grapevine, TX |
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Hilton Garden Inn |
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4.89 |
% |
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8/29/2012 |
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9/1/2022 |
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$ |
11,810,000 |
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Collegeville, PA |
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Courtyard |
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4.89 |
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8/30/2012 |
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9/1/2022 |
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12,650,000 |
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Anchorage, AK |
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Embassy Suites |
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4.97 |
% |
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9/13/2012 |
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10/1/2022 |
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23,230,000 |
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Total |
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$ |
47,690,000 |
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At closing the Company used a portion of the total proceeds of the loans to extinguish and payoff its $30 million non-revolving line of credit and to pay transaction costs. The remaining proceeds will be used for general corporate purposes, including capital expenditures, redemptions and distributions.
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.
All brand and trade names, logos or trademarks contained, or referred to, in this Form 8-K are the properties of their respective owners.
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 Nine, Inc. |
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By: |
/s/ Glade M. Knight |
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Glade M.
Knight, |
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September 19, 2012 |
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