Host Hotels & Resorts, Inc. Announces Pricing Of $450 Million Of 2.900% Senior Notes Due 2031 By Host Hotels & Resorts, L.P.
November 08 2021 - 4:30PM
Host Hotels & Resorts, Inc. (NASDAQ: HST) (the “Company”),
the nation’s largest lodging real estate investment trust, 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 $450 million aggregate principal
amount of 2.900% Senior Notes due 2031 (the "Notes"). The Offering
is expected to close on November 23, 2021, subject to the
satisfaction or waiver of customary closing conditions.
The estimated net proceeds of the Offering,
after deducting the underwriting discount, original issue discount
and fees and expenses, are expected to be approximately $439
million. Host L.P. intends to allocate an amount equal to the net
proceeds from the sale of the Notes to one or more eligible green
projects. Following this allocation, Host L.P. intends to use the
net proceeds from the sale of the Notes to redeem all of Host
L.P.’s outstanding $400 million aggregate principal amount of
3.750% Series D senior notes due 2023. Proceeds from the Offering
not used to redeem the Series D senior notes will be used for
general corporate purposes.
BofA Securities, Inc., Wells Fargo Securities,
LLC, Deutsche Bank Securities, Goldman Sachs & Co. LLC 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 April 15, 2021
and a preliminary prospectus supplement filed with the Securities
and Exchange Commission on November 8, 2021. A copy of the final
prospectus supplement and the accompanying prospectus relating to
the Notes may be obtained, when available, by contacting BofA
Securities, Inc., at 200 North College Street, NC1-004-03-43,
Charlotte, NC 28255-0001, Attention: Prospectus Department, or by
calling toll free (800) 294-1322 or by email at
dg.prospectus_requests@bofa.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: the duration
and scope of the COVID-19 pandemic and its short and longer-term
impact on the demand for travel, transient and group business, and
levels of consumer confidence; actions governments, businesses and
individuals take in response to the pandemic, including limiting or
banning travel or the size of gatherings; the impact of the
pandemic and actions taken in response to the pandemic on global
and regional economies, travel, and economic activity, including
the duration and magnitude of its impact on unemployment rates,
business investment and consumer discretionary spending; the pace
of recovery when the COVID-19 pandemic subsides; general economic
uncertainty in U.S. markets where we own hotels and a worsening of
economic conditions or low levels of economic growth in these
markets; the effects of steps we and our hotel managers take to
reduce operating costs in response to the COVID-19 pandemic; our
ability to close this Offering and apply the proceeds as currently
intended; our ability to use or allocate the net proceeds from this
Offering to eligible green projects that will satisfy, or continue
to satisfy, investor criteria and expectations regarding
environmental impact and sustainability performance; other changes
(apart from the COVID-19 pandemic) in national and local economic
and business conditions and other factors such as natural disasters
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 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 real estate investment trust 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 or
to use available cash to make special dividends; 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.
Jaime Marcus Investor Relations(240)
744-5117ir@hosthotels.com
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