New Issue: Host Marriott upsized $450 million exchangeable yields 3.25%, up 50%

Nashville, March 11 - Host Marriott LP sold and upsized $450 million of 20-year exchangeable notes, which convert into Host Marriott Corp. shares, at par to yield 3.25% with a 50% initial conversion premium via sole bookrunner Goldman Sachs & Co.

The Rule 144A issue, upped from $375 million, priced at the cheap end of guidance for a 2.75% to 3.25% coupon and a 50% to 55% initial conversion premium.

Proceeds are earmarked to redeem the Host Marriott LP 7.875% series B senior notes due 2008.

Terms of the deal are:

Issuer:	Host Marriott LP
Reference shares:	Host Marriott Corp.
Issue:	Exchangeable senior secured debentures
Bookrunners:	Goldman Sachs & Co.
Co-managers:	Merrill Lynch & Co. and UBS Investment Bank
Amount:	$450 million, increased from $375 million
Greenshoe:	$50 million, reduced from $75 million
Maturity:	March 15, 2024
Coupon:	3.25%
Price:	Par
Yield:	3.25%
Conversion premium:	50%
Conversion price:	$18.30
Conversion ratio:	54.6448
Contingent conversion:	120%
Call:	Non-callable for 5 years
Put:	In years 6, 10 and 15
Ratings:	Moody's: Ba3
	S&P: B+
Price talk:	2.75-3.25%, 50-55%
Pricing date:	March 10, after the close
Settlement date:	March 16
Distribution:	Rule 144A

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