New Issue: Host Hotels sells upsized $400 million 9% eight-year notes at 96.599

By Paul A. Harris

St. Louis, May 5 - Host Hotels & Resorts, LP priced and upsized $400 million issue of 9% eight-year notes (Ba1/BB+/) at 96.599 to yield 9 5/8% on Tuesday, according to an informed source.

The quick-to-market deal, which was upsized from $350 million and played to a solid order book, came at the tight end of the 9¾% area price talk, the source added.

Goldman Sachs & Co. led the syndicate of banks underwriting the Rule 144A for life offering.

Proceeds will be used for refinancing debt and for general corporate purposes.

The issuer is a Bethesda, Md.-based lodging real estate company.

Issuer:	Host Hotels & Resorts, LP
Amount:	$400 million, increased from $350 million
Maturity:	May 15, 2017
Security description:	Senior unsecured notes
Initial purchasers:	Goldman, Sachs & Co., Banc of America Securities LLC, Deutsche Bank Securities Inc., Barclays Capital Inc., BNY Mellon Capital Markets LLC, Calyon Securities (USA) Inc., Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, FBR Capital Markets & Co., HSBC Securities (USA) Inc., J.P. Morgan Securities Inc., Royal Bank of Scotland Group plc, Raymond James & Associates, Inc., Scotia Capital (USA) Inc., UBS Securities LLC, Wachovia Capital Markets, LLC
Coupon:	9%
Price:	96.599
Yield:	9 5/8%
Spread:	673 bps
Call features:	Make-whole at Treasuries plus 50 bps until May 15, 2013, then callable at 104.50, 102.25, 101.125, par on and after May 15, 2016
Equity clawback:	35% at 109.0 until May 15, 2012
Change-of-control put:	101%
Trade date:	May 5
Settlement date:	May 11
Ratings:	Moody's: Ba1
	Standard & Poor's: BB+
Distribution:	Rule 144A for life
Price talk:	9¾% area

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