By Andrea Heisinger
Omaha, May 16 - Starwood Hotels & Resorts Worldwide, Inc. priced $600 million of senior notes (Baa3/BBB-) in two tranches Friday, an informed source said.
The company reopened its 6.25% notes due Feb. 15, 2013 to add $200 million. The notes priced at 100.747 to yield Treasuries plus 300 basis points. There is a make-whole redemption option of Treasuries plus 35 bps.
Total issuance of the 2013 notes is now $600 million.
The second tranche consisted of $400 million of 6.75% 10-year notes priced at par to yield Treasuries plus 296.6 bps. There is a make-whole redemption option of Treasuries plus 45 bps.
All the notes feature a change-of-control put of 101%.
Bookrunners were Banc of America Securities LLC, J.P. Morgan Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc. and Morgan Stanley & Co. Inc.
Proceeds will be used to reduce outstanding borrowings under a revolving credit facility.
The hotel and leisure company is based in White Plains, N.Y.
| Issuer: | Starwood Hotels & Resorts Worldwide, Inc.
|
| Issue: | Senior notes
|
| Amount: | $600 million
|
| Bookrunners: | Banc of America Securities LLC, J.P. Morgan Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Inc., Morgan Stanley & Co. Inc.
|
| Change-of-control put: | 101%
|
| Trade date: | May 16
|
| Settlement date: | May 23
|
| Ratings: | Moody's: Baa3
|
| Standard & Poor's: BBB-
|
|
|
| Five-year tranche
|
| Amount: | $200 million reopened
|
| Maturity: | Feb. 15, 2013
|
| Coupon: | 6.25%
|
| Price: | 100.747
|
| Spread: | Treasuries plus 300 bps
|
| Call: | Make-whole at Treasuries plus 35 bps
|
| Total issuance: | $600 million, including $400 million previously issued
|
|
|
| 10-year tranche
|
| Amount: | $400 million
|
| Maturity: | May 15, 2018
|
| Coupon: | 6.75%
|
| Price: | Par
|
| Yield: | 6.75%
|
| Spread: | Treasuries plus 296.6 bps
|
| Call: | Make-whole at Treasuries plus 45 bps
|
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