Published on 3/14/2012 in the Prospect News High Yield Daily.
New Issue: Host upsizes to $350 million, prices 10-year notes at par to yield 5¼%
By Paul A. Harris
Portland, Ore., March 14 - Host Hotels & Resorts, Inc. priced an upsized $350 million issue of non-callable 10-year notes (existing Ba1/confirmed BB+) at par to yield 5¼% on Wednesday, according to market sources.
The yield printed at the wide end of the 5 1/8% to 5¼% yield talk.
Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC and Bank of America Merrill Lynch were the bookrunners for the quick-to-market issue, which was upsized from $300 million.
The Bethesda, Md.-based lodging firm plans to use the proceeds to repay the $113 million principal amount outstanding of the 7½% mortgage secured by the JW Marriott, Washington, D.C., to redeem $150 million 6 7/8% series S senior notes due in 2014 and for general corporate purposes.
Issuer: | Host Hotels & Resorts, LP (Host Hotels & Resorts, Inc.)
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Amount: | $350 million, increased from $300 million
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Maturity: | March 15, 2022
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Securities: | Senior notes
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Bookrunners: | Goldman Sachs & Co., Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Bank of America Merrill Lynch
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Coupon: | 5¼%
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Price: | Par
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Yield: | 5¼%
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Spread: | 297 bps
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Call protection: | Non-callable
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Trade date: | March 14
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Settlement date: | March 22
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Ratings: | Moody's: Existing Ba1
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| Standard & Poor's: BB+
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Distribution: | Rule 144A and Regulation S
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Price talk: | 5 1/8% to 5¼%
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Marketing: | Quick to market
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