Host Hotels and Resorts (NYSE:HST)
Historical Stock Chart
6 Months : From Jul 2019 to Jan 2020
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, successfully redeemed all of its $300 million aggregate principal amount 6% Series Z Senior Notes due 2021 and all of its $350 million aggregate principal amount 5¼% Series B Senior Notes due 2022. The notes were redeemed using the net proceeds from the issuance of $650 million aggregate principal amount of 3⅜% Senior Notes due 2029, which closed on September 26, 2019, along with available cash. The net proceeds of the offering, after deducting the underwriting discount, original issue discount, fees and expenses, were approximately $640 million.
“We are pleased to have refinanced our Series Z and B bonds by issuing the first green bonds in the lodging industry and achieving the lowest effective bond pricing in the Company’s history,” said Michael Bluhm, Executive Vice President, Chief Financial Officer. “As a result of this refinancing, we have extended our weighted average debt maturity from 4.6 years to 5.9 years and reduced our weighted average interest rate from 4.32% to 3.96%. In addition, we have eliminated our debt maturities until 2023 while maintaining a balanced proforma debt maturity schedule with no more than approximately 6% of our debt as a percent of enterprise value maturing in any given year. We are proud of our green bond issuance and remain deeply committed to our sustainability program.”
The Company’s industry leading sustainability program has been recognized by the Dow Jones Sustainability Indices (DJSI), named to both the World Index for the first time and the North American Index for the third consecutive year in 2019. The Company also achieved Overall Global Sector Leader and a 5 Star Rating as well as Green Star status for the seventh consecutive year from GRESB; and is a four-time winner of the National Association of Real Estate Investment Trusts’ (NAREIT) Lodging/Resorts Leader in the Light award.
Finally, prior to launching the bonds, Host Hotels & Resorts, Inc.’s corporate credit rating was upgraded to BBB- from BB+ by S&P Global Ratings on September 10, 2019, while the Company’s bonds or issue-level rating remained unchanged at BBB-.*
The information in this press release is for informational purposes only and shall not constitute, or form a part of, an offer to sell or the solicitation of an offer to sell or the solicitation of an offer to buy any securities.
* Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. Credit ratings are subject to change depending on financial and other factors. No report of any rating agency is incorporated by reference herein.
About Host Hotels & Resorts
Host Hotels & Resorts, Inc. is an S&P 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 77 properties in the United States and five properties internationally totaling approximately 48,000 rooms. The Company also holds non-controlling interests in six domestic and one international joint ventures. 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®, The Luxury Collection®, Hyatt®, Fairmont®, Hilton®, Swissôtel®, ibis® and Novotel®, as well as independent brands. 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.
Michael BluhmChief Financial Officer240.744.5110
Gee LingbergSenior Vice President240.744.5275