Published on 10/8/2015 in the Prospect News Investment Grade Daily.
New Issue: Host Hotels prices upsized $400 million 4.5% long 10-year notes at 248 bps spread
By Aleesia Forni
Virginia Beach, Oct. 8 – Host Hotels & Resorts, LP sold an upsized $400 million offering of 4.5% series F senior notes (Baa2/BBB) due Feb. 1, 2026 on Thursday at 248 basis points over Treasuries, according to a market source and an FWP filed with the Securities and Exchange Commission.
Pricing was at 99.68 to yield 4.54%.
The deal’s size was originally announced at $350 million.
BofA Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs & Co. and Deutsche Bank Securities Inc. are the joint bookrunners.
Proceeds, along with cash on hand and borrowings from a new term loan, will be used to redeem $500 million of the company’s 6% series V notes due 2020 at a price of $515 million.
Host Hotels is a real estate investment trust based in Bethesda, Md., that owns and operates hotel properties.
| Issuer: | Host Hotels & Resorts LP
|
| Amount: | $400 million, upsized from $350 million
|
| Description: | Series F, senior notes
|
| Maturity: | Feb. 1, 2026
|
| Bookrunners: | BofA Merrill Lynch, J.P. Morgan Securities LLC, Goldman Sachs & Co., Deutsche Bank Securities Inc.
|
| Senior co-managers: | BNY Mellon Capital Markets, LLC, Credit Agricole Securities (USA) Inc., Scotia Capital (USA) Inc., Wells Fargo Securities, LLC
|
| Junior co-managers: | PNC Capital Markets LLC, SunTrust Robinson Humphrey, Inc., U.S. Bancorp Investments, Inc., BBVA Securities Inc., Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, Regions Securities LLC, SMBC Nikko Securities Americas, Inc., UBS Securities LLC
|
| Coupon: | 4.5%
|
| Price: | 99.68
|
| Yield: | 4.54%
|
| Spread: | Treasuries plus 248 bps
|
| Make-whole call: | Treasuries plus 40 bps prior to Nov. 1, 2025, then callable at par
|
| Trade date: | Oct. 8
|
| Settlement date: | Oct. 14
|
| Ratings: | Moody’s: Baa2
|
| Standard & Poor’s: BBB
|
| Distribution: | SEC registered
|
| Price guidance: | Treasuries plus 250 bps area, tightened from Treasuries plus 270 bps area
|
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