Host Hotels’ restated $1.5 billion credit facilities detailed in 8-K

By Wendy Van Sickle

Columbus, Ohio, June 5 – Host Hotels & Resorts, Inc.’s $1.5 billion amended and restated credit facilities will bear interest based on the company’s unsecured long-term debt rating, according to details contained in an 8-K filing with the Securities and Exchange Commission.

As previously reported, on May 31 the company extended to May 31, 2021 its $1 billion senior revolver and its $500 million term loan, which had been scheduled to mature in 2018 and 2017, respectively.

The revolver has two six-month extension options, and the term loan has a one-year extension option.

The revolver bears interest at Libor plus a margin that is initially 100 basis points and can range from 82.5 bps to 155 bps. The margin on the term loan is initially 110 bps and can range from 90 bps to 175 bps.

The revolver has a commitment fee ranging from 12.5 bps to 30 bps.

The company may add up to $500 million of additional revolving or term commitments, and there are $100 million sublimits for swingline loans and letters of credit.

Bank of America Merrill Lynch, JPMorgan Chase Bank, NA and Wells Fargo Securities, LLC were the bookrunners and were joined as lead arrangers by Bank of New York Mellon, Credit Agricole CIB and Bank of Nova Scotia.

Wells Fargo Bank, NA, Deutsche Bank Securities Inc., PNC Bank, NA, U.S. Bank NA, SunTrust Bank, Goldman Sachs Bank USA, Bank of New York Mellon, Credit Agricole, Bank of Nova Scotia, Sumitomo Mitsui Banking Corp. and TD Bank, NA were the documentation agents.

JPMorgan was the syndication agent and Bank of America the administrative agent.

Host Hotels must maintain a minimum fixed charge coverage ratio of 1.25 times, a maximum leverage ratio of 7.25 times and a minimum interest coverage ratio of 1.75 times if its leverage ratio is less than 7 times or 1.5 times otherwise.

At closing, the company had about $218 million drawn on the facility. Proceeds may be used for working capital and general corporate purposes, including acquisitions.

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

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

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