Published on 5/6/2015 in the Prospect News Investment Grade Daily.
New Issue: Host Hotels prices $500 million 4% senior notes due 2025 at 178 bps over Treasuries
By Aleesia Forni
Virginia Beach, May 6 – Host Hotels & Resorts LP sold $500 million of 4% series E senior notes due 2025 on Wednesday at Treasuries plus 178 basis points, according to a market source and an FWP filed with the Securities and Exchange Commission.
The notes (Baa2/BBB/BBB-) priced at 99.838 to yield 4.02%.
Pricing was at the tight end of guidance.
Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the bookrunners.
Proceeds will be used to redeem all of the company’s outstanding 5 7/8% series X senior notes due 2019 at an aggregate redemption price of $515 million.
Host Hotels & Resorts is a lodging real estate investment trust based in Bethesda, Md.
| Issuer: | Host Hotels & Resorts LP
|
| Amount: | $500 million
|
| Description: | Series E senior notes
|
| Maturity: | 2025
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., Scotia Capital (USA) Inc.
|
| Junior co-managers: | BBVA Securities Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Regions Securities LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc.
|
| Coupon: | 4%
|
| Price: | 99.838
|
| Yield: | 4.02%
|
| Spread: | 178 bps over Treasuries
|
| Trade date: | May 6
|
| Settlement date: | May 15
|
| Make-whole call: | 30 bps prior to March 15, 2025, then callable at par
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Fitch: BBB-
|
| Distribution: | SEC registered
|
| Price guidance: | 180 bps area over Treasuries
|
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