Starwood details pricing, sub-commitments for $1.75 billion facility

By Marisa Wong

Madison, Wis., Dec. 5 - Starwood Hotels & Resorts Worldwide, Inc. released more details on its new $1.75 billion multi-currency revolving credit facility due Feb. 28, 2018 in an 8-K filed Wednesday with the Securities and Exchange Commission.

Up to $500 million of the facility is available in primary alternate currency sub-commitments consisting of U.S. dollars, Canadian dollars, euros, pounds sterling, Australian dollars or yen; $50 million for Mexican pesos; $100 million of other permitted Libor-based currencies other than U.S. dollars; and $100 million of other permitted non-Libor-based currencies other than U.S. dollars. The overall limit on outstanding loans in currencies other than U.S. dollars is $500 million.

Interest is equal to Libor plus 90 basis points to 130 bps, depending on the company's unsecured debt rating.

The facility fee ranges from 10 bps to 20 bps, also based on the company's debt rating.

Starwood closed on the facility with a syndicate of 27 banks on Nov. 30.

J.P. Morgan Securities LLC, Citigroup Global Markets Inc. and Merrill Lynch, Pierce, Fenner & Smith Inc. are the joint lead arrangers and joint bookrunners. Wells Fargo Securities, LLC and HSBC Securities (USA), Inc. are also joint lead arrangers. JPMorgan Chase Bank, NA is the administrative agent.

The new loan replaces the company's existing $1.5 billion credit agreement dated April 20, 2010, which was to mature on Nov. 15, 2013.

According to a prior press release, the new facility increases Starwood's financial flexibility and is expected to be used for general corporate purposes.

Stamford, Conn.-based Starwood owns, operates and franchises hotels.

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