Starwood begins tender offer for up to $300 million 7 7/8%, 6¼% notes

By Angela McDaniels

Tacoma, Wash., Nov. 5 - Starwood Hotels & Resorts Worldwide, Inc. has begun a tender offer to purchase up to $200 million of its $800 million of 7 7/8% senior notes due 2012 and up to $100 million of its $600 million of 6¼% senior notes due 2013, according to a company news release.

For each $1,000 principal amount, the purchase price is $1,060 for the 7 7/8% notes and $1,020 for the 6¼% notes. In each case, the payout includes an early tender premium of $30 for each note tendered by 5 p.m. ET on Nov. 19, the early tender date.

The company will also pay accrued interest up to but excluding the settlement date.

The tender offer will expire at midnight ET on Dec. 4.

Starwood will use the proceeds from a public offering of new senior notes to fund the tender offer.

The tender offer is not conditioned on any minimum amount of notes being tendered, but it is subject to the company receiving enough proceeds from the new notes to pay for the tendered notes.

Citigroup Global Markets Inc. (800 558-3745 or 212 723-6106), Bank of America Merrill Lynch (888 292-0700 or 980 388-4603), Barclays Capital Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. are the dealer managers for the tender offer.

Global Bondholder Services Corp. (866 470-4300 or 212 430-3774) is the depositary and information agent.

Starwood is hotel and leisure company based in White Plains, N.Y.

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