RICHMOND, Va.--(BUSINESS WIRE)--
Apple Hospitality REIT, Inc. (NYSE: APLE) (the “Company” or “Apple
Hospitality”) today announced the preliminary results of its previously
announced modified “Dutch Auction” Tender Offer (the “Tender Offer”) to
purchase for cash up to $200 million in aggregate purchase price of the
Company’s common shares, which expired at 12:00 midnight, at the end of
the day, New York City Time, on June 22, 2015.
Based on the preliminary results reported by American Stock Transfer &
Trust Company, LLC, the depositary for the Tender Offer, approximately
10.9 million shares were validly tendered at the final purchase price of
$19.00 per share and not properly withdrawn.
In accordance with the terms and conditions of the Tender Offer, and
based on the preliminary results reported by the depositary, the Company
expects to purchase approximately 10.5 million shares at a price of
$19.00 per share, for an aggregate purchase price of approximately $200
million (excluding fees and expenses relating to the Tender Offer).
The number of shares that the Company expects to purchase in the Tender
Offer represents approximately 6% of its total common shares outstanding
as of June 22, 2015. Based on the preliminary results of the Tender
Offer, the Company expects to have approximately 175.6 million common
shares outstanding immediately following payment for shares purchased in
the Tender Offer.
Due to the fact that the number of common shares tendered at the final
purchase price exceeded the aggregate purchase price of $200 million
being sought in the Tender Offer, based on the preliminary results
described above, the Company will accept for purchase on a pro rata
basis approximately 97% of the common shares properly tendered and not
properly withdrawn at the purchase price of $19.00 per common share by
each tendering shareholder (other than “odd lot” holders, whose common
shares will be purchased on a priority basis).
The number of shares to be purchased and the price per share under the
Tender Offer are preliminary and may change based on the final confirmed
numbers from the depositary. Final results will be announced within five
business days. Payment for the shares accepted for purchase will
commence as promptly as practicable thereafter.
About Apple Hospitality REIT, Inc.
Apple Hospitality REIT, Inc. (NYSE: APLE) is a publicly traded real
estate investment trust (REIT) that owns one of the largest portfolios
of upscale, select service hotels in the United States. As of March 31,
2015, the Company’s portfolio consisted of 173 hotels, with 22,003
guestrooms, diversified across the Hilton® and Marriott® families of
brands with locations in urban, high-end suburban and developing markets
across 32 states. For more information, please visit www.applehospitalityreit.com.
Forward-Looking Statements Disclaimer
Certain statements contained in this press release other than historical
facts may be considered forward-looking statements. These
forward-looking statements are predictions and generally can be
identified by use of statements that include phrases such as “may,”
“believe,” “expect,” “anticipate,” “intend,” “estimate,” “project,”
“target,” “goal,” “plan,” “should,” “will,” “predict,” “potential,” and
similar expressions that convey the uncertainty of future events or
outcomes. Such statements, involve known and unknown risks,
uncertainties, and other factors which may cause the actual results,
performance, or achievements of Apple Hospitality to be materially
different from future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include, but
are not limited to, the ability of Apple Hospitality to effectively
acquire and dispose of properties; the ability of Apple Hospitality to
implement its operating strategy; changes in general political, economic
and competitive conditions and specific market conditions; adverse
changes in the real estate and real estate capital markets; financing
risks; the outcome of current and future litigation; regulatory
proceedings or inquiries; and changes in laws or regulations or
interpretations of current laws and regulations that impact Apple
Hospitality’s business, assets or classification as a real estate
investment trust. Although Apple Hospitality believes that the
assumptions underlying the forward-looking statements contained herein
are reasonable, any of the assumptions could be inaccurate, and
therefore there can be no assurance that such statements included in
this press release will prove to be accurate. In light of the
significant uncertainties inherent in the forward-looking statements
included herein, the inclusion of such information should not be
regarded as a representation by Apple Hospitality or any other person
that the results or conditions described in such statements or the
objectives and plans of Apple Hospitality will be achieved. In addition,
Apple Hospitality’s qualification as a real estate investment trust
involves the application of highly technical and complex provisions of
the Internal Revenue Code. Readers should carefully review Apple
Hospitality’s financial statements and the notes thereto, as well as the
risk factors described in Apple Hospitality’s filings with the SEC,
including, but not limited to, in the section entitled “Risk Factors” in
the Company’s Annual Report on Form 10-K for the year ended December 31,
2014 and Quarterly Report on Form 10-Q for the quarter ended March 31,
2015. Any forward-looking statement that Apple Hospitality makes speaks
only as of the date of this press release. Apple Hospitality undertakes
no obligation to publicly update or revise any forward-looking
statements or cautionary factors, as a result of new information, future
events, or otherwise, except as required by law.
For additional information or to receive press releases via email,please visit our website at www.applehospitalityreit.com
View source version on businesswire.com: http://www.businesswire.com/news/home/20150623005907/en/
Apple Hospitality REIT, Inc.
Kelly Clarke, Director of Investor
Services
804-727-6321
kclarke@applereit.com
Source: Apple Hospitality REIT, Inc.