Host Hotels & Resorts, Inc. Announces Pricing Of $600 Million Of 3.50% Senior Notes Due 2030 By Host Hotels & Resorts, L.P.
August 11 2020 - 04:49PM
Host Hotels & Resorts, Inc. (NYSE: HST) (the “Company”),
the nation’s largest lodging real estate investment trust, today
announced that Host Hotels & Resorts, L.P. ("Host L.P."), for
whom the Company acts as sole general partner, has priced its
offering (the "Offering") of $600 million aggregate principal
amount of 3.50% Senior Notes due 2030 (the "Notes"). The Offering
is expected to close on August 20, 2020, subject to the
satisfaction or waiver of customary closing conditions.
The estimated net proceeds of the Offering,
after deducting the underwriting discount, original issue discount
and fees and expenses, are expected to be approximately $588
million. Host L.P. intends to allocate an amount equal to the net
proceeds from the sale of the Notes to one or more eligible green
projects, including the previous acquisitions of the W Hollywood
Hotel in California and the 1 Hotel South Beach in Miami Beach,
Florida, each of which has received LEED Silver certification. Host
L.P. intends to use the net proceeds from the sale of the Notes to
purchase for cash any and all of Host L.P.’s outstanding $450
million principal amount of 4.750% Series C senior notes that are
tendered in connection with the tender offer launched on the date
hereof (the “Tender Offer”). Proceeds from the Offering not used to
pay for the notes that are tendered in the Tender Offer will be
used for general corporate purposes, which may include repurchases
of debt.
J.P. Morgan Securities LLC, BofA Securities,
Inc., Wells Fargo Securities, LLC, Deutsche Bank Securities,
Goldman Sachs & Co. LLC and Morgan Stanley are the joint
book-running managers for the Offering.
The Offering is being made pursuant to an
effective shelf registration statement and accompanying prospectus
filed with the Securities and Exchange Commission on April 12, 2018
and a preliminary prospectus supplement filed with the Securities
and Exchange Commission on August 11, 2020. A copy of the final
prospectus supplement and the accompanying prospectus relating to
the Notes may be obtained, when available, by contacting J.P.
Morgan Securities LLC, at 383 Madison Avenue, New York, NY 10179,
Attention: Investment Grade Syndicate Desk – 3rd Floor, or by
calling (212) 834-4533; BofA Securities, Inc., at 200 North College
Street, NC1-004-03-43, Charlotte, NC 28255-0001, Attention:
Prospectus Department, or by calling toll free (800) 294-1322 or by
email at dg.prospectus_requests@bofa.com; and Wells Fargo
Securities, LLC, 608 2nd Avenue South, Suite 1000, Minneapolis, MN
55402, Attn: WFS Customer Service, telephone (800) 645-3751 or
email: wfscustomerservice@wellsfargo.com. 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 jurisdiction 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
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,” “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: the duration
and scope of the COVID-19 pandemic and its short and longer-term
impact on the demand for travel, transient and group business, and
levels of consumer confidence; actions governments, businesses and
individuals take in response to the pandemic, including limiting or
banning travel; the impact of the pandemic and actions taken in
response to the pandemic on global and regional economies, travel,
and economic activity, including the duration and magnitude of its
impact on unemployment rates, business investment and consumer
discretionary spending; the pace of recovery when the COVID-19
pandemic subsides; general economic uncertainty in U.S. markets
where we own hotels and a worsening of economic conditions or low
levels of economic growth in these markets; the effects of steps we
and our hotel managers take to reduce operating costs in response
to the COVID-19 pandemic; our ability to close this Offering and
apply the proceeds as currently intended; our ability to use or
allocate the net proceeds from this Offering to eligible green
projects that will satisfy, or continue to satisfy, investor
criteria and expectations regarding environmental impact and
sustainability performance; other changes (apart from the COVID-19
pandemic) in national and local economic and business conditions
and other factors such as natural disasters and weather that will
affect occupancy rates at our hotels and the demand for hotel
products and services; the impact of geopolitical developments
outside the U.S. on lodging demand; volatility in global financial
and credit markets; operating risks associated with the hotel
business; risks and limitations in our operating flexibility
associated with the level of our indebtedness and our ability to
meet covenants in our debt agreements; risks associated with our
relationships with property managers and joint venture partners;
our ability to maintain our properties in a first-class manner,
including meeting capital expenditure requirements; the effects of
hotel renovations on our hotel occupancy and financial results; our
ability to compete effectively in areas such as access, location,
quality of accommodations and room rate structures; risks
associated with our ability to complete acquisitions and
dispositions and develop new properties and the risks that
acquisitions and new developments may not perform in accordance
with our expectations; our ability to continue to satisfy complex
rules in order for us to remain a real estate investment trust for
federal income tax purposes; risks associated with our ability to
effectuate our dividend policy, including factors such as operating
results and the economic outlook influencing our board’s decision
whether to pay further dividends at levels previously disclosed or
to use available cash to make special dividends; and other risks
and uncertainties associated with our business described in the
Company’s annual report on Form 10-K, quarterly reports on Form
10-Q and current reports on Form 8-K filed 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.
Tejal Engman Investor Relations (240) 744-5116
ir@hosthotels.com
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