Starwood expects to access credit markets, take out new bank facility this year

New York, March 28 - Starwood Hotels & Resorts Worldwide, Inc. said it expects to access the credit markets and take out a new bank loan this year.

The White Plains, N.Y. hotel and leisure company "continues to monitor the credit markets," Starwood said in a filing with the Securities and Exchange Commission.

In particular, it noted that one of its series of zero-coupon convertibles is putable in May at a price of $202 million and $2.187 billion of credit facilities mature in 2003.

To pay the put on the convertibles and refinance the maturity of the credit facilities, Starwood said it expects to sell bonds during 2002 and take out a new senior bank facility. It added the standard caution that it can give no assurance it will be able to refinance its debt and if it can whether the terms will be favorable.

Starwood sold $816 million face amount of zero-coupon convertible senior notes due 2021 in May 2001, raising proceeds of $500 million.

The series A notes totaling $202 million are putable on May 25, 2002. The series B notes are not putable until May 2004 for $330 million.

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