Host Hotels & Resorts, Inc. Closes $400 Million of Exchangeable Senior Debentures by Host Hotels & Resorts, L.P. in a Private Of
22 Dezembro 2009 - 7:10PM
PR Newswire (US)
BETHESDA, Md., Dec. 22 /PRNewswire-FirstCall/ -- Host Hotels &
Resorts, Inc. (NYSE:HST) announced today the closing of the
issuance of $400 million aggregate principal amount ($40 million
more than previously announced) of 2.5% exchangeable senior
debentures due 2029, 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, for
cash, shares of the Company's common stock or a combination of cash
and shares of the Company's common stock, at the Company's option.
The initial exchange rate is 71.0101 shares of the Company's common
stock per $1,000 principal amount of debentures, which represents a
premium of 31% to the closing price of $10.75 for the Company's
common stock on December 15, 2009. The debentures will be
redeemable at the Company's option beginning on October 20, 2015 at
the 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 on October 15, 2015 and
on certain dates in subsequent years. The net proceeds from the
sale of the debentures of approximately $391 million will be used
for debt repayment, including to redeem all of the $346 million
outstanding of Host Hotels & Resorts, L.P.'s 7% Series M Senior
Notes due 2012, as well as the repayment of other outstanding debt
and for general corporate purposes. The debentures and the
underlying shares of 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 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. 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," "plan," "predict,"
"project," "will," "continue" and other similar terms and phrases,
including references to assumption 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:
international, national and local economic and business conditions
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; and our ability to continue to
satisfy complex rules in order for us to qualify as 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.
http://www.newscom.com/cgi-bin/prnh/20060417/HOSTLOGO
http://photoarchive.ap.org/ DATASOURCE: Host Hotels & Resorts,
Inc. CONTACT: Gregory J. Larson, Executive Vice President Investor
Relations, +1-240-744-5800, of Host Hotels & Resorts, Inc. Web
Site: http://www.hosthotels.com/
Copyright