By Paul A. Harris
St. Louis, Oct. 27 - Host Hotels & Resorts, LP priced a $500 million issue of 6 7/8% eight-year notes (Ba1/BB) at 99.245 to yield 7% on Friday, according to an informed source.
The deal came on top of price talk for a yield of 7% at a slight discount.
Deutsche Bank Securities and Merrill Lynch & Co. were joint bookrunners for the Rule 144A offering.
Proceeds will be used to repay or repurchase $450 million the issuer's 9½% series I senior notes due 2007 and for general corporate purposes.
Host Hotels is the sole general partner of Bethesda, Md.-based Host Hotels & Resorts, Inc.
| Issuer: | Host Hotels & Resorts, LP
|
| Amount: | $500 million
|
| Maturity: | Nov. 1, 2014
|
| Security description: | Senior notes
|
| Bookrunners: | Deutsche Bank Securities, Merrill Lynch & Co.
|
| Coupon: | 6 7/8%
|
| Price: | 99.245
|
| Yield: | 7%
|
| Spread: | 232 bps
|
| Call protection: | Four years
|
| Trade date: | Oct. 27
|
| Settlement date: | Nov. 2
|
| Ratings: | Moody's: Ba1
|
| Standard & Poor's: BB
|
| Distribution: | Rule 144A
|
| Price talk: | 7% at a slight discount
|
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