Host Hotels extends $1 billion revolver, $500 million term loan to 2022

By Marisa Wong

Morgantown, W.Va., June 1 – Host Hotels & Resorts, Inc. said it amended and extended its existing $1 billion senior unsecured revolver scheduled to mature in 2018 and its $500 million term loan scheduled to mature in 2017.

The amended facility will extend the maturity for both the revolver and term loan to 2022, including extensions, according to a news release.

Based on current debt ratings, the initial interest rate is one-month Libor plus 100 basis points on the revolver and Libor plus 110 bps on the term loan, for all-in rates of about 2% and 2.1%, respectively, for dollar-denominated borrowings.

The company’s separate $500 million 2015 term loan was not modified and will remain outstanding until 2020, the release noted.

Gregory J. Larson, executive vice president and chief financial officer, said in the release, “Due to the company’s strong investment-grade balance sheet, we have the financial flexibility to opportunistically manage our maturity schedule while remaining within our target leverage range as this transaction demonstrates.

“With this extension, we have no meaningful debt maturities until September 2020. We will continue to prudently deploy capital for long-term accretive growth opportunities while advancing our redevelopment initiatives and returning capital to stockholders,” Larson said.

Host Hotels is a real estate investment trust based in Bethesda, Md., that owns and operates hotel properties.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.