By Kenneth Lim
Boston, March 20 - Host Hotels & Resorts Inc. priced $550 million of 20-year exchangeable senior debentures at the rich end of talk on Monday after the market closed, reoffered at 98.5 with a coupon of 2.625% and an initial exchange premium of 20%.
The reoffered price range was 98 to 98.5 during price talk with the same coupon and exchange premium.
The exchangeables were issued by Host operating partnership Host 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 Securities, Deutsche Bank, Citigroup and Merrill Lynch were the bookrunners of the Rule 144A offering.
The exchangeables are non-callable for the first five years and may be put in years five, 10 and 15.
There is a contingent exchange trigger at 130% of the exchange price.
The exchangeables 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 fund general purposes.
| Issuer: | Host Hotels & Resorts LP
|
| Issue: | Exchangeable senior debentures
|
| Exchange property: | Host Hotels & Resorts Inc. common stock
|
| Bookrunners: | Goldman Sachs, Banc of America, Deutsche Bank, Citigroup and Merrill Lynch
|
| Amount: | $550 million
|
| Greenshoe: | $50 million
|
| Maturity: | April 15, 2027
|
| Coupon: | 2.625%
|
| Price: | Par, reoffered at 98.5
|
| Yield: | 2.625%
|
| Conversion premium: | 20%
|
| Conversion price: | $32.26
|
| Conversion ratio: | 31.0020
|
| Contingent conversion: | 130%
|
| Dividend protection: | Yes
|
| Takeover protection: | Yes
|
| Call protection: | Non-callable before April 15, 2012
|
| Puts: | April 15, 2012; April 15, 2017; April 15, 2022
|
| Price talk: | 2.625%, up 20%, reoffered at 98-98.5
|
| Pricing date: | March 19, after the close
|
| Distribution: | Rule 144A
|
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