Host Hotels & Resorts Closes $600 Million of Exchangeable Senior Debentures in A Private Offering
March 23 2007 - 3:28PM
PR Newswire (US)
BETHESDA, Md., March 23 /PRNewswire-FirstCall/ -- Host Hotels &
Resorts, Inc. (NYSE:HST) announced today the closing on the
issuance of $600 million aggregate principal amount of 2 5/8%
exchangeable senior debentures due in 2027, including the exercise
of the $50 million over-allotment option by the initial purchasers.
The debentures were issued by Host Hotels & Resorts, L.P., for
whom the Company acts as sole general partner. The debentures were
offered in a private placement to qualified institutional buyers
pursuant to Rule 144A under the Securities Act of 1933, as amended.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060417/HOSTLOGO ) The
debentures will be exchangeable, under certain circumstances, into
cash up to the principal amount of the debentures exchanged and
either cash and/or shares, at the Company's option, with respect to
additional proceeds due to holders of the debentures, if any. The
initial exchange rate is 31.002 shares of common stock per $1,000
principal amount of debentures, which represents a premium of 20%
to the closing price of $26.88 for the Company's common stock on
March 19, 2007. The debentures will be redeemable at the Company's
option beginning in April 2012 at a redemption price of 100% of the
principal amount plus accrued interest. Holders of the debentures
will have the right to require the Company to repurchase their
debentures in April 2012 and on certain dates in subsequent years.
The net proceeds from the offering of approximately $589 million
will likely be used for mortgage debt repayments and related costs.
To the extent the proceeds are not used for mortgage debt
repayments and related costs, they will be used for general
corporate purposes. The debentures and the underlying common stock
have not been registered under the United States Securities Act of
1933 and may not be offered or sold in the United States absent
registration or an applicable exemption from registration
requirements. This press release shall not constitute an offer to
sell or a solicitation of an offer to buy any security and shall
not constitute an offer, solicitation or sale of any securities in
any jurisdiction where such an offering or sale would be unlawful.
http://www.newscom.com/cgi-bin/prnh/20060417/HOSTLOGO
http://photoarchive.ap.org/ DATASOURCE: Host Hotels & Resorts,
Inc. CONTACT: Kevin J. Jacobs of Host Hotels & Resorts, Inc.,
+1-240-744-5212 Web site: http://www.hosthotels.com/
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