Starwood amends loan, getting $375 million unsecured term loan

By Sara Rosenberg

New York, April 15 - Starwood Hotels & Resorts Worldwide Inc. amended its credit facility, providing for a $375 million two-year senior unsecured term loan, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Pricing on the term loan can range from Libor plus 450 basis points to 1000 bps, based on ratings and leverage (see table)

The company has the option to extend the term loan maturity date to Feb. 10, 2011, subject to certain conditions, for an extension fee of 37.5 bps.

Proceeds from the term loan will be used to repay revolver borrowings and for general corporate purposes.

The amendment was completed on April 11.

Deutsche Bank is the administrative agent on the deal.

Starwood is a White Plains, N.Y.-based hotel and leisure company.

Table: Term Loan Pricing Grid

Unsecured Debt Rating Consolidated Leverage Ratio Rate

BBB+ or higher/Baa1 or higher Less than 2.25:1.0 0.450%

BBB/Baa2 Greater than or equal to 2.25:1.0 and less than 3.00:1.0 0.500%

BBB-/Baa3 Greater than or equal to 3.00:1.0 and less than 3.75:1.0 0.625%

BB+/Ba1 Greater than or equal to 3.75:1.0 and less than 4.25:1.0 0.750%

Lower than BB+/Ba1 Greater than or equal to 4.25:1.0 1.000%

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