Published on 10/19/2010 in the Prospect News High Yield Daily.
New Issue: Host Hotels sells $500 million 10-year senior notes at par to yield 6%
By Paul A. Harris
St. Louis, Oct. 19 - Host Hotels & Resorts, LP priced a $500 million issue of 10-year series U senior notes (Ba1/BB+/) at par to yield 6% on Tuesday, according to an informed source.
The yield printed on top of the price talk.
Goldman Sachs & Co., Bank of America Merrill Lynch, Deutsche Bank Securities Inc. and J.P. Morgan Securities LLC were the joint bookrunners for the quick-to-market deal.
Proceeds will be used to redeem at least $250 million of the $500 outstanding 7⅛% series K senior notes due 2013 at 101.188% and for general corporate purposes, future acquisitions or repayment of other debt.
The issuer is a Bethesda, Md.-based real estate investment trust that focuses on upscale hotels, with brands including Marriott, Ritz-Carlton, Hyatt and Westin.
| Issuer: | Host Hotels & Resorts, LP
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2020
|
| Securities: | Series U senior notes
|
| Bookrunners: | Goldman Sachs & Co., Bank of America Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC
|
| Senior co-managers: | Citigroup Global Markets Inc., Credit Agricole CIB, RBS Securities Inc., Scotia Capital, Wells Fargo Securities
|
| Junior co-managers: | Barclays Capital Inc., BNY Mellon Capital Markets LLC, Credit Suisse Securities, Morgan Stanley & Co. Inc., UBS Investment Bank
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Nov. 1, 2015, then callable at 103, 102, 101, par on and after Nov. 1, 2018
|
| Equity clawback: | 35% at 106.0 until Nov. 1, 2013
|
| Change-of-control put: | 101%
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB+
|
| Pricing date: | Oct. 19
|
| Settlement date: | Oct. 25
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 6% area
|
| Marketing: | Quick to market
|
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