Merger Expected to Close During Third Quarter
Apple Hospitality REIT, with an enterprise value of $5.7 billion will keep its name in the transaction comprised of $94 million in cash, with about 49.1 million Apple Hospitality common shares issued to Apple Ten shareholders, and the larger REIT assuming about $239 million in debt.
Apple Ten REIT will have a 45-day window to solicit alternative proposals from third parties, however, the termination fee is $5 million if the company, a non-traded REIT managed by the same team managing the publicly traded Apple Hospitality REIT, withdraws from the transaction. After the 45 days ending on May 28, the breakup charge rises to an even steeper $25 million.
The well-attended Blue Vault session at the recent National Planning Holdings National Conference was very well received. The value of their products was evidenced by the volume of questions from the attendees. Stacy Chitty, Managing Partner, did an excellent job of explaining the history, strategy and value of Blue Vault data.