Host Hotels & Resorts, Inc. Announces Pricing Of An Additional $150 Million Of Host Hotels & Resorts, L.P.’s 3.50% Senior N...
August 31 2020 - 4:30PM
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 an additional $150 million aggregate
principal amount of 3.50% Senior Notes due 2030 (the "Notes"). The
Notes are being issued as additional notes under an existing
supplemental indenture under which Host L.P. issued $600 million
aggregate principal amount of 3.50% Senior Notes due 2030 (the
“Existing Notes”) on August 20, 2020. The Notes will have the same
terms as, be equal in right of payment with, of the same series as,
and vote as a single class with, the Existing Notes. The Offering
is expected to close on September 3, 2020, subject to the
satisfaction or waiver of customary closing conditions.
The estimated net proceeds of the Offering are
expected to be approximately $146 million, after deducting the
underwriting discount, de minimis original issue discount and fees
and expenses, and excluding accrued interest from the August 20,
2020 issue date for the existing Series I Senior Notes. 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 hotel developments and redevelopments, renovations in
existing hotels that have received, or are expected to receive LEED
certification, refurbishments and improvement projects including
energy and water efficient technologies and renewable energy.
Following the allocation referenced above, Host L.P. intends
to use the net proceeds 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 31, 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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