Published on 8/2/2012 in the Prospect News High Yield Daily.
New Issue: Host Hotels prices upsized $450 million 10.5-year bullet notes at par to yield 4¾%
By Paul A. Harris
Portland, Ore., Aug. 2 - Host Hotels & Resorts, LP priced an upsized $450 million issue of 10.5-year series C senior notes (expected Ba1/confirmed BB+) at par to yield 4¾% on Thursday, according to a syndicate source.
The yield printed at the tight end of yield talk set in the 4 7/8% area.
Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners for the quick-to-market issue, which was upsized from $350 million.
The Bethesda, Md.-based lodging real estate investment trust plans to use the proceeds to redeem the remaining $250 million of its 6 3/8% series O senior notes due 2015. Additional proceeds resulting from the $100 million upsizing of the deal will be used to redeem $150 of its 6¾% series Q senior notes due 2016.
Proceeds will also be used for general corporate purposes.
| Issuer: | Host Hotels & Resorts, LP
|
| Amount: | $450 million, increased from $350 million
|
| Maturity: | March 1, 2023
|
| Securities: | Series C senior notes
|
| Bookrunners: | Bank of America Merrill Lynch, Goldman Sachs & Co., J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | BNY Mellon Capital Markets LLC, Credit Agricole Securities (USA) Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, PNC Capital Markets LLC, RBC Capital Markets, LLC, Scotia Capital (USA) Inc.
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 329 bps
|
| Call protection: | Non-callable
|
| Make-whole: | Treasuries plus 50 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Aug. 2
|
| Settlement date: | Aug. 9
|
| Ratings: | Moody's: expected Ba1
|
| Standard & Poor's: BB+
|
| Distribution: | SEC registered
|
| Price talk: | 4 7/8% area
|
| Marketing: | Quick to market
|
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