New Issue: Starwood sells $250 million 7.15% 10-year notes at 97.559 to yield 7½%

By Paul A. Harris

St. Louis, Nov. 5 - Starwood Hotels & Resorts Worldwide Inc. priced a $250 million issue of 7.15% 10-year senior unsecured notes (Ba1/BB/) at 97.559 to yield 7½% on Thursday, according to an informed source.

The yield printed at the tight end of the 7 5/8% area price talk.

Citigroup Global Markets Inc., Bank of America Merrill Lynch, Calyon Securities, RBS Securities Inc. and Scotia Capital managed the quick-to-market sale, which was priced off of the investment-grade desk.

The White Plains, N.Y., hotel and leisure company will use the proceeds to repay debt.

Issuer:	Starwood Hotels & Resorts Worldwide Inc.
Face amount:	$250 million
Proceeds:	$243,898,000 (approximate)
Maturity:	Dec. 1, 2019
Securities:	Senior unsecured notes
Bookrunners:	Citigroup Global Markets Inc., Bank of America Merrill Lynch, Calyon Securities, RBS Securities Inc., Scotia Capital
Coupon:	7.15%
Price:	97.559
Yield:	7½%
Call protection:	Non-callable (make-whole provision at Treasuries plus 50 bps)
Trade date:	Nov. 5
Settlement date:	Nov. 20
Ratings:	Moody's: Ba1
	Standard & Poor's: BB
Distribution:	SEC registered
Price talk:	7 5/8% area

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