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Host Hotels closes on $500 million term loan via facility’s accordion
By Wendy Van Sickle
Columbus, Ohio, Sept. 14 – Host Hotels & Resorts, Inc. closed on a five-year $500 million term loan by exercising the accordion feature of its existing credit facility, according to a Monday press release.
The term loan lifts the credit facility to $2 billion, which includes a $1 billion revolver and two $500 million term loans. Thursday’s restatement of the credit facility provides for an additional $500 million accordion feature, according to an 8-K filed with the Securities and Exchange Commission.
Merrill Lynch, Pierce, Fenner & Smith Inc, J.P. Morgan Securities, LLC and Wells Fargo Securities, LLC served as joint lead arrangers and joint book runners in the debt. Bank of American, NA acted as administrative agent; JPMorgan Chase Bank, NA as syndication agent and Wells Fargo Bank, NA as documentation agent.
Interest is currently at Libor plus 110 basis points with the spread ranging from 90 bps to175 bps based on the company’s debt rating. There is a commitment fee of 20 bps per annum.
The new term loan matures September 2020. The revolver’s maturity remains June 2018 with two six-month extension options, and the existing term loan’s maturity remains June 2017 with two one-year extension options, according to the 8-K.
At closing, the company drew down $300 million on the term loan and has the option to draw down all or a portion of the remaining $200 million within 180 days.
Proceeds from the initial $300 million draw will be used to repay current amounts outstanding on the revolver, the company said.
Host Hotels is a Bethesda, Md.-based real estate investment trust that owns luxury and upper-upscale hotels.
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