By Paul A. Harris
St. Louis, Oct. 27 - Host Marriott Corp. priced an upsized quick-to-market offering of $725 million senior notes due Nov. 1, 2013 (Ba3/B+) at par Monday to yield 7 1/8%, according to a syndicate source.
The deal was increased from $500 million. Price talk was for a yield of 7%-7¼%.
Banc of America Securities and Deutsche Bank Securities were bookrunners for the Rule 144A deal. The co-managers were BNY, Citigroup, Credit Lyonnais, Fleet Securities, Goldman Sachs & Co., Merrill Lynch & Co., Scotia Capital, SG Cowen, UBS Investment Bank and Wells Fargo.
Host Marriott will use proceeds to redeem $429 million of 7 7/8% senior notes due 2005 and part of the existing 8.45% senior notes due 2008.
The issuer is a lodging and real estate company headquartered in Bethesda, Md.
Issuer: Host Marriott Corp.
| Amount: | $725 million (incased from $500 million)
|
| Maturity: | Nov. 1, 2013
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| Security description: | Senior notes
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| Bookrunner: | Banc of America Securities, Deutsche Bank Securities
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| Coupon: | 7 1/8%
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| Price: | Par
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| Yield: | 7 1/8%
|
| Spread: | 286 basis points
|
| Call features: | Callable on Nov. 1, 2008 at 103.563, then 102.375, 101.187, declining to par on Nov. 1, 2011 and thereafter
|
| Equity clawback: | Until Nov. 1, 2006 for 35% at 107.125%
|
| Settlement date: | Nov. 6, 2003
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| Ratings: | Moody's: Ba3
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| Standard & Poor's: B+
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| Rule 144A Cusip: | 44108EAR9
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| Price talk: | 7%-7¼%
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