New Issue: Host upsizes to $350 million, prices 10-year notes at par to yield 5¼%

By Paul A. Harris

Portland, Ore., March 14 - Host Hotels & Resorts, Inc. priced an upsized $350 million issue of non-callable 10-year notes (existing Ba1/confirmed BB+) at par to yield 5¼% on Wednesday, according to market sources.

The yield printed at the wide end of the 5 1/8% to 5¼% yield talk.

Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the bookrunners for the quick-to-market issue, which was upsized from $300 million.

The Bethesda, Md.-based lodging firm plans to use the proceeds to repay the $113 million principal amount outstanding of the 7½% mortgage secured by the JW Marriott, Washington, D.C., to redeem $150 million 6 7/8% series S senior notes due in 2014 and for general corporate purposes.

Issuer:	Host Hotels & Resorts, LP (Host Hotels & Resorts, Inc.)
Amount:	$350 million, increased from $300 million
Maturity:	March 15, 2022
Securities:	Senior notes
Bookrunners:	Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch
Coupon:	5¼%
Price:	Par
Yield:	5¼%
Spread:	297 bps
Call protection:	Non-callable
Trade date:	March 14
Settlement date:	March 22
Ratings:	Moody's: Existing Ba1
	Standard & Poor's: BB+
Distribution:	Rule 144A and Regulation S
Price talk:	5 1/8% to 5¼%
Marketing:	Quick to market

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