BETHESDA, Md., March 14, 2012 /PRNewswire/ -- 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 private placement offering
(the "Offering") of $350 million in
aggregate principal amount of 5 1/4% senior notes due 2022 (the
"Notes"). The Offering is expected to close on March 22, 2012, subject to the satisfaction or
waiver of customary closing conditions.
(Logo: http://photos.prnewswire.com/prnh/20060417/HOSTLOGO
)
The net proceeds of the Offering of approximately $344 million, after taking into account fees and
offering expenses, plus available cash, will be used to repay the
$113 million principal amount
outstanding of the 7.5% mortgage secured by the JW Marriott,
Washington, D.C., and to
redeem $250 million of our 6 7/8%
Series S senior notes due in 2014.
The Notes 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. The Notes are being offered and sold only to
qualified institutional buyers in reliance on Rule 144A and in
offshore transactions pursuant to Regulation S under the Securities
Act.
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 state 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.
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; national and local economic and business
conditions, including the effect on travel of potential terrorist
attacks, that will affect occupancy rates at our hotels and the
demand for hotel products and services; operating risks associated
with the hotel business; risks associated with the level of our
indebtedness and our ability to meet covenants in our debt
agreements; relationships with property managers; our ability to
maintain our properties in a first-class manner, including meeting
capital expenditure requirements; our ability to compete
effectively in areas such as access, location, quality of
accommodations and room rate structures; changes in travel
patterns, taxes and government regulations which influence or
determine wages, prices, construction procedures and costs; our
ability to complete acquisitions and dispositions; the risk that
the Company's board of directors will determine to pay dividends at
a rate different than currently anticipated and our ability to
continue to satisfy complex rules in order for us to remain a REIT
for federal income tax purposes and other risks and uncertainties
associated with our business described in the Company's filings
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.
SOURCE Host Hotels & Resorts, Inc.