Host Hotels & Resorts, Inc. Announces Pricing Of $400 Million Of 3 7/8% Senior Notes Due 2024 By Host Hotels & Resorts, L.P.
March 09 2017 - 4:15PM
Host Hotels & Resorts, Inc. (NYSE:HST) today announced that
Host Hotels & Resorts, L.P. ("Host L.P."), for whom the Company
acts as sole general partner, has priced its offering (the
"Offering") of $400 million aggregate principal amount of 3 7/8%
Senior Notes due 2024 (the "Notes"). The Offering is expected to
close on March 20, 2017, subject to the satisfaction or waiver of
customary closing conditions.
The net proceeds of the Offering of
approximately $395 million, after deducting the underwriting
discount, fees and expenses, will be used to repay a portion of
Host L.P.’s outstanding indebtedness under its senior credit
facility and for general corporate purposes.
Deutsche Bank Securities Inc., Goldman, Sachs
& Co., Wells Fargo Securities, LLC, Merrill Lynch, Pierce,
Fenner & Smith Incorporated and J.P. Morgan Securities LLC, are
the joint book-running managers for the Offering.
The Offering is being made pursuant to an
effective shelf registration statement and accompanying prospectus
filed with the Securities and Exchange Commission on March 31, 2015
and a preliminary prospectus supplement filed with the Securities
and Exchange Commission on March 9, 2017. A copy of the final
prospectus supplement and the accompanying prospectus relating to
the Notes may be obtained, when available, by contacting Deutsche
Bank Securities Inc. Attn: Prospectus Group, 60 Wall Street, New
York, NY 10005-2836, telephone: (800) 503-4611 or email:
prospectus.CPDG@db.com, Goldman, Sachs & Co., Attn: Prospectus
Department, 200 West Street, New York, NY 10282, telephone: (866)
471-2526, fax: (212) 902-9316 or email:
prospectus-ny@ny-email.gs.com and Wells Fargo Securities, LLC, 608
2nd Avenue South, Suite 1000, Minneapolis, MN 55402, Attn: WFS
Customer Service, telephone: (800) 645-3751 or email:
wfscustomerservice@wellsfargo.com.
This press release does not constitute an offer
to sell or the solicitation of an offer to buy any of the
securities, nor shall there be any sale of the securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the
securities laws of such state.
This press release contains information about
pending transactions, and there can be no assurance that these
transactions will be completed.
Note: This press release contains forward-looking statements
within the meaning of federal securities regulations. These
forward-looking statements are identified by their use of terms and
phrases such as "anticipate," "believe," "could," "estimate,"
"expect," "intend," "may," "should," "plan," "predict," "project,"
"will," "continue" and other similar terms and phrases, including
references to assumptions and forecasts of future results.
Forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results to differ materially
from those anticipated at the time the forward-looking statements
are made. These risks include, but are not limited to: our ability
to close this Offering and apply the proceeds as currently
intended; changes in national and local economic and business
conditions and other factors such as natural disasters, pandemics
and weather that will affect occupancy rates at our hotels and the
demand for hotel products and services; the impact of geopolitical
developments outside the U.S. on lodging demand; volatility in
global financial and credit markets; operating risks associated
with the hotel business; risks and limitations in our operating
flexibility associated with the level of our indebtedness and our
ability to meet covenants in our debt agreements; risks associated
with our relationships with property managers and joint venture
partners; our ability to maintain our properties in a first-class
manner, including meeting capital expenditure requirements; the
effects of hotel renovations on our hotel occupancy and financial
results; our ability to compete effectively in areas such as
access, location, quality of accommodations and room rate
structures; risks associated with our ability to complete
acquisitions and dispositions and develop new properties and the
risks that acquisitions and new developments may not perform in
accordance with our expectations; our ability to continue to
satisfy complex rules in order for us to remain a REIT for federal
income tax purposes; risks associated with our ability to
effectuate our dividend policy, including factors such as operating
results and the economic outlook influencing our board’s decision
whether to pay further dividends at levels previously disclosed;
and other risks and uncertainties associated with our business
described in the Company's annual report on Form 10-K, quarterly
reports on Form 10-Q and current reports on Form 8-K filed with the
SEC. Although the Company believes the expectations reflected in
such forward-looking statements are based upon reasonable
assumptions, it can give no assurance that the expectations will be
attained or that any deviation will not be material. All
information in this release is as of the date of this release, and
the Company undertakes no obligation to update any forward-looking
statement to conform the statement to actual results or changes in
the Company's expectations.
Bret D.S. McLeod
Senior Vice President
240.744.5216
Gee Lingberg
Vice President
240.744.5275
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