Host Hotels & Resorts buys back $105 million of 2.625% exchangeables

By Angela McDaniels

Tacoma, Wash., Oct. 17 - Host Hotels & Resorts, Inc. repurchased roughly $105 million principal amount of its 2.625% exchangeable senior debentures due 2027 for $106 million during August.

The company disclosed the repurchase in its 10-Q filing for the fiscal third quarter ended Sept. 9, which was filed with the Securities and Exchange Commission on Monday.

The exchangeables had a carrying value of $102 million, and the company recorded a loss of about $4 million on the transaction.

In May, the company gave notice of its plan to redeem $150 million of its 3.25% exchangeable senior debentures due 2024.

During June, the holders of about $134 million of the exchangeables elected to exchange their debentures rather than receive the cash redemption price. The remaining $16 million of debentures were redeemed for cash at par on June 27.

As of Sept. 9, $421 million of the 2.625% exchangeables and $175 million of the 3.25% exchangeables remain outstanding. The company's debt totals $5.5 billion.

Host is a real estate investment trust based in Bethesda, Md., that owns and operates hotel properties.

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