Host Marriott does not expect to pay fourth quarter preferred dividend

New York, July 23 - Host Marriott Corp. said it does not expect to pay the fourth quarter dividend on its preferred shares.

The Bethesda, Md. company said it has more than adequate liquidity but based upon its current forecast it will not be allowed to make the dividend payment under limitations in its senior note indenture and credit facility.

Both the senior notes and the credit facility restrict Host Marriott's ability to pay dividends if its EBITDA to interest coverage ratio is below 2.0 to 1.0, the company said in a filing with the Securities and Exchange Commission.

The company also does not expect to pay a common stock dividend in 2003.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.