Starwood Hotels & Resorts 3.5% convertibles holders may receive contingent interest

By Jennifer Chiou

New York, May 16 - Starwood Hotels & Resorts Worldwide, Inc. said that holders of its $359 million principal amount of 3.5% convertible senior notes due 2023 are entitled to receive contingent interest of 0.4125% per year.

Starwood Hotels & Resorts Worldwide said interest will accrue until Nov. 15 because the notes traded at 120% or more of their principal amount for the five-day period ending on May 12.

The company announced a redemption for the convertibles on May 5, stating it will pay $1,000 per $1,000 principal amount of the notes, plus accrued interest up to but excluding the June 5 redemption date.

Up to 5 p.m. ET on June 1, investors may convert the notes at the rate of 24.765 Starwood common shares per $1,000 principal amount of notes. Starwood stock closed at $61.00 on Tuesday.

Starwood Hotels & Resorts Worldwide, based in White Plains, N.Y., is a hotel and leisure company with 850 properties in 95 countries.

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