By Paul A. Harris
St. Louis, March 3 - Host Marriott LP priced an upsized $650 million issue of 10-year senior notes (Ba3/B+) at par to yield 6 3/8%, according to a syndicate source.
Price talk was 6¼% to 6½%.
Goldman Sachs & Co. had the physical books for the Rule 144A with registration rights issue. Deutsche Bank Securities and Citigroup were joint bookrunners. The co-managers were BNY Securities, SG Corporate & Investment Banking, Calyon Securities, Bear Stearns & Co., Banc of America Securities LLC, Wachovia Securities, Scotia Capital and The Royal Bank of Scotland.
Proceeds will be used to repay or repurchase Host Marriott LP's existing 8 3/8% series E senior notes due 2006, to redeem a portion of the existing 7 7/8% series B senior notes due 2008 and for other corporate purposes.
The issue was upsized from $500 million.
The Bethesda, Md.-based real estate company owns or holds controlling interests in upscale and luxury full-service hotels.
| Issuer: | Host Marriott LP
|
| Amount: | $650 million (increased from $500 million)
|
| Maturity: | March 15, 2015
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| Security description: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. (physical books), Deutsche Bank Securities, Citigroup (joint books)
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 200 basis points
|
| Call features: | Callable after March 15, 2010 at 103.188, 102.125, 101.063, par on and after March 15, 2013
|
| Equity clawback: | Until March 15, 2008 for 35% at 106.375
|
| Trade date: | March 3
|
| Settlement date: | March 10
|
| Ratings: | Moody's: Ba3
|
| Standard & Poor's: B+
|
| Price talk: | 6¼%-6½%
|
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