Host Marriott sets pricing in tender for 8 3/8% notes

New York, March 14 - Host Marriott Corp. said Host Marriott LP has set pricing in its cash tender offer for all its $300 million 8 3/8% series E senior notes due 2006.

Holders who tender by the consent deadline will receive $1,040.59 per $1,000 principal amount, while holders who tender after will receive $1,010.59.

As announced on March 3, in addition to the tender, the Bethesda, Md., owner of upscale and luxury full-service hotels is also soliciting consents to amend the note indenture to eliminate substantially all of the restrictive covenants, modify the events of default and modify certain delivery obligations in the event of defeasance.

Pricing was set based on a yield of 50 basis points over the yield to maturity based on the bid side price of the U.S. Treasury 1.875% bond due Jan. 31, 2006 at 2 p.m. ET on March 14, two days before the consent deadline, with a minimum tender price of $1,020 per $1,000 principal amount. The total includes a $30 per $1,000 principal amount consent payment that will only be paid to holders who tender by the consent deadline of 5 p.m. ET on March 16.

The tender ends at 12:01 a.m. ET on March 31.

Host Marriott will also pay accrued interest up to but excluding the settlement date.

Assuming a settlement date of March 17 and using the reference Treasury yield as of 5 p.m. ET on March 2, the total payment would be $1,041.54 per $1,000 principal amount, including the $30 consent payment.

Goldman, Sachs & Co. is the dealer manager (888 828-3182 or call collect 212 357-8664). D.F. King & Co. Inc. is the information agent (800 431-9643).

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