By Paul A. Harris
St. Louis, Oct. 27 - Host Hotels & Resorts, LP priced a $500 million issue of 6 7/8% eight-year notes (Ba1/BB) at 99.245 to yield 7% on Friday, according to an informed source.
The deal came on top of price talk for a yield of 7% at a slight discount.
Deutsche Bank Securities and Merrill Lynch & Co. were joint bookrunners for the Rule 144A offering.
Proceeds will be used to repay or repurchase $450 million the issuer's 9½% series I senior notes due 2007 and for general corporate purposes.
Host Hotels is the sole general partner of Bethesda, Md.-based Host Hotels & Resorts, Inc.
Issuer: | Host Hotels & Resorts, LP
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Amount: | $500 million
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Maturity: | Nov. 1, 2014
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Security description: | Senior notes
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Bookrunners: | Deutsche Bank Securities, Merrill Lynch & Co.
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Coupon: | 6 7/8%
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Price: | 99.245
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Yield: | 7%
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Spread: | 232 bps
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Call protection: | Four years
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Trade date: | Oct. 27
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Settlement date: | Nov. 2
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Ratings: | Moody's: Ba1
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| Standard & Poor's: BB
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Distribution: | Rule 144A
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Price talk: | 7% at a slight discount
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