Host Hotels to price $550 million 20-year exchangeables at 2.625%, up 20%, reoffered at 98-98.5

By Kenneth Lim

Boston, March 19 - Host Hotels & Resorts Inc. planned to price $550 million of 20-year exchangeable senior debentures on Monday after the market closed, talked at a coupon of 2.625%, a convertible premium of 20% and a reoffered price range of 98 to 98.5.

The convertibles were issued by Host operating partnership Hotels & Resorts LP and are exchangeable into the listed company's common stock.

There is an over-allotment option for a further $50 million.

Goldman Sachs, Banc of America, Deutsche Bank, Citigroup and Merrill Lynch are the bookrunners of the Rule 144A offering.

The convertibles are non-callable for the first five years and may be put in years five, 10 and 15.

There is a contingent conversion trigger at 130% of the conversion price.

The convertibles have dividend and takeover protection.

Host, a Bethesda, Md.-based real estate investment trust that focuses on hotel properties, said the proceeds of the deal will be used to repay mortgage debt and to fund general purposes.

© 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.