Host Marriot $75 million perpetual preferred talked at 8 7/8% area

By Paul A. Harris

St. Louis, May 25 - Price talk for Host Marriott Corp.'s $75 million offering of class E cumulative redeemable perpetual preferred stock (B3/CCC+) is in the area of 8 7/8%, a market source said Tuesday.

Pricing is expected on Wednesday.

The deal contains an $11.25 million greenshoe.

UBS Investment Bank and Bear Stearns & Co. are joint bookrunners for the off-the-shelf offering. Deutsche Bank Securities is the senior co-manager. Stifel Nicholas and Wells Fargo Capital are the junior co-managers.

A total of 3 million $25.00 shares will be sold at par.

The shares will come with five years of call protection.

The notes will be listed on the New York Stock Exchange.

The Bethesda, Md., issuer is a lodging real estate investment trust.

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