BETHESDA, Md., Nov. 22, 2011 /PRNewswire/ -- Host Hotels
& Resorts, Inc. (NYSE: HST) today announced that it has closed
a new $1 billion revolving credit
facility, which represents a $400
million increase over its existing facility, with a
syndicate of banks. The existing credit facility was
scheduled to mature in September of 2012. The Company also
has an option to seek additional lender commitments to increase the
aggregate principal amount of the new facility by up to
$500 million through an accordion
feature, allowing for total commitments of up to $1.5 billion.
(Logo: http://photos.prnewswire.com/prnh/20060417/HOSTLOGO
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The new facility has an initial maturity of November 2015 with an option to extend the term
for one additional year, subject to certain conditions and the
payment of an extension fee. The interest rate spread for
LIBOR-based borrowings under the new facility ranges from 175 to
275 basis points, depending on the Company's leverage ratio.
The Company will have the option to further reduce the interest
rate spread if the Company's unsecured debt achieves an investment
grade rating. Currently, approximately $116 million is outstanding under the new
facility. The facility was arranged by Merrill Lynch, Pierce,
Fenner & Smith Incorporated, J.P. Morgan Securities, LLC and
Wells Fargo Securities, LLC, as joint lead arrangers and joint book
runners.
Larry K. Harvey, executive vice
president and chief financial officer, commented, "We are extremely
pleased with this transaction. Over the last three years, we
have worked hard to expand our banking relationships. Those
efforts paid off as we significantly enhanced the size of the
facility by increasing the number of participating banks from 10 to
14. In addition, the new credit facility improves our
liquidity and flexibility in several ways, including an initial
term of four years plus a one year extension option, and doubling
the number of foreign currencies in which we can borrow on the
facility."
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is an S&P 500 and Fortune
500 company and is the largest lodging real estate investment trust
and one of the largest owners of luxury and upper-upscale hotels.
The Company currently owns 105 properties in the United States and 16 properties
internationally totaling approximately 65,000 rooms. The Company
also holds non-controlling interests in a joint venture in
Europe that owns 13 hotels with
approximately 4,200 rooms and a joint venture in India that is developing seven hotels in three
cities with approximately 1,800 rooms. Guided by a disciplined
approach to capital allocation and aggressive asset management, the
Company partners with premium brands such as Marriott®,
Ritz-Carlton®, Westin®, Sheraton®,
W®, St. Regis®, Le
Meridien®, The Luxury Collection®,
Hyatt®, Fairmont®, Four Seasons®,
Hilton®, Swissotel®, ibis®,
Pullman®, and Novotel®* in the operation of
properties in over 50 major markets worldwide. For additional
information, please visit the Company's website at
www.hosthotels.com.
*This press release contains registered trademarks that are the
exclusive property of their respective owners. None of the owners
of these trademarks has any responsibility or liability for any
information contained in this press release.
SOURCE Host Hotels & Resorts, Inc.