Host Hotels greenshoe exercised, upping exchangeables to $200 million

By Devika Patel

Knoxville, Tenn., Dec. 22 - Underwriters for Host Hotels & Resorts Inc. partner Host Hotels & Resorts LP's offering of 20-year 2.5% exchangeable senior debentures exercised their over-allotment option in full for $50 million more of the exchangeables, increasing the size of the issue to $400 million, the company said in a press release.

As previously reported, the company sold the debentures at par in a Rule 144A offering on Dec. 22, via joint bookrunners Deutsche Bank Securities Inc., Bank of America Merrill Lynch and J.P. Morgan Securities Inc.

The debentures have a conversion premium of 31% and a conversion price of $14.08, which equals a conversion ratio of 71.0227.

The debentures will be non-callable until Oct. 15, 2015, and there are investor puts in 2015, 2019 and 2024.

Proceeds are intended to repay debt, including redemption of a portion of the $346 million outstanding of Host Hotels & Resorts LP's 7% series M senior notes due 2012, as well as repayment of other outstanding debt, and for general corporate purposes.

Bethesda, Md.-based Host Hotels is a real estate investment trust focused on ownership and operation of hotel properties.

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