Host Marriott calls 8.45% notes

New York, Jan. 1 - Host Marriott Corp. said it plans to repay its remaining $218 million of 8.45% series C senior notes due 2008 with part of the $295 million it received from the resolution of outstanding issues on the New York Marriott World Trade Center and Financial Center Hotels.

The Bethesda, Md., owner of upscale and luxury hotels will redeem the series C notes on Jan. 30. Holders will receive a premium for the early retirement.

Using the proceeds remaining after repayment of the $65 million loan on the World Trade Center Hotel, Host Marriott will also use $33 million to partially repay mortgage debt secured by its four Canadian properties and $44 million to partially repay mortgage debt secured by its Ritz-Carlton hotels in Buckhead, Atlanta and Naples, Fla.

Annual interest expense will be reduced by $24 million due to the repayments, Host Marriott said.

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