Published on 12/5/2012 in the Prospect News Investment Grade Daily.
New Issue: Starwood Hotels taps market for $350 million 3.125% 10-year notes at 158 bps spread
By Andrea Heisinger
New York, Dec. 5 - Starwood Hotels & Resorts Worldwide, Inc. sold an upsized $350 million of 3.125% 10-year senior notes in Wednesday's market at a spread of Treasuries plus 158 basis points, an informed source said.
The size of the trade was increased from $250 million. Pricing was done tighter than whispered talk in the 170 bps to 175 bps range and at the low end of revised guidance in the 160 bps area, plus or minus 2 bps, the source said.
The notes (Baa2/BBB/BBB) were priced at 99.596 to yield 3.171%.
There is a make-whole call at 25 bps over Treasuries until Nov. 15, 2022 with a par call after that date.
The notes features a change-of-control put feature at 101%.
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and J.P. Morgan Securities LLC were the bookrunners.
Proceeds will be used to repurchase existing notes in a cash tender offer, to pay accrued and unpaid interest on existing notes and to pay any tender premiums plus related fees and expenses.
The hotel and leisure company is based in Stamford, Conn.
| Issuer: | Starwood Hotels & Resorts Worldwide, Inc.
|
| Issue: | Senior notes
|
| Amount: | $350 million, upsized from $250 million
|
| Maturity: | Feb. 15, 2023
|
| Bookrunners: | Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC
|
| Senior co-managers: | Barclays, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, RBC Capital Markets, LLC, RBS Securities Inc., Scotia Capital (USA) Inc., U.S. Bancorp Investments, Inc.
|
| Co-managers: | Banca IMI SpA, Goldman Sachs & Co., Mizuho Securities USA Inc., SMBC Nikko Capital Markets Ltd., SunTrust Robinson Humphrey Inc.
|
| Coupon: | 3.125%
|
| Price: | 99.596
|
| Yield: | 3.171%
|
| Spread: | Treasuries plus 158 bps
|
| Call: | Make-whole at Treasuries plus 25 bps to Nov. 15, 2022, par call after
|
| Change-of-control put: | 101%
|
| Trade date: | Dec. 5
|
| Settlement date: | Dec. 10
|
| Ratings: | Moody's: Baa2
|
| Standard & Poor's: BBB
|
| Fitch: BBB
|
| Price talk: | 170 bps to 175 bps (whispered), 160 bps area, plus or minus 2 bps (revised)
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
