Host Hotels & Resorts draws down $746 million under revolver

By Wendy Van Sickle

Columbus, Ohio, Sept. 28 – Host Hotels & Resorts, Inc. limited partnership Host Hotels & Resorts, LP gave notice to draw down an additional approximately $746 million on its $1.5 billion revolving credit agreement on Sept. 22.

As of June 30, there were $750 million of borrowings and $750 million of availability under the revolver, according to an 8-K filing with the Securities and Exchange Commission.

The revolver bears current interest of Libor plus 150 basis points, based on Host’s current investment-grade debt rating.

Host said it increased its borrowings under the revolver as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of continued uncertainty in the global markets resulting from Covid-19.

The proceeds from the borrowing are being held on Host’s balance sheet, resulting in estimated total cash and cash equivalents of approximately $2.6 billion, including approximately $135 million of restricted cash in furniture, fixture and equipment reserves. Proceeds may be used for working capital, general corporate, investment, financing or other purposes.

Bank of America, NA is the administrative agent.

Host Hotels & Resorts acts as the borrower’s general partner. It is a Bethesda, Md.-based real estate investment trust that owns luxury and upper-upscale hotels.

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