Host redeems $250 million of 6 7/8%, $386 million of 2 5/8% notes

By Tali David

Minneapolis, April 25 - Host Hotels & Resorts, Inc. redeemed $250 million of its 6 7/8% series S senior notes due 2014. The company also repurchased $386 million of its 2 5/8% exchangeable senior debentures due 2027 under a put option exercised by the holders, according to a press release.

The notes were redeemed at par, financed by the company's new $350 million senior note offering and available cash.

In connection with the expected transactions, Host also intends to repay the remaining 6 7/8% series S senior notes, resulting in lowering the company's debt balance from $6.1 billion at the end of the quarter to $5.2 billion and reducing its cash and cash equivalents to about $400 million.

The company also has $859 million of available capacity under its credit facility, according to the release.

Host Hotels & Resorts is a lodging real estate investment trust based in Bethesda, Md.

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