Host Hotels to redeem part of 3.25% exchangeables due 2024 on June 27

By Toni Weeks

San Diego, May 31 - Host Hotels & Resorts, LP intends to redeem $150 million of its $325 million of outstanding 3.25% exchangeable senior debentures due 2024, according to an 8-K filing with the Securities and Exchange Commission.

The securities will be redeemed on June 27 at par plus accrued interest. Those selected for redemption become exchangeable. The current exchange price is 65.5744 shares of Host REIT common stock per $1,000 principal amount of exchangeables, which is equivalent to an exchange price of $15.25 per share.

Host said that, based on the exchange price, it expects holders of exchangeables selected for redemption to elect to exchange them for shares of Host REIT common stock rather than to receive the cash redemption price, as long as the common stock price exceeds $15.25 per share.

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

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