Host Hotels & Resorts, Inc. Announces Pricing Of $650 Million Of 3⅜% Senior Notes Due 2029 By Host Hotels & Resorts, L.P.
September 12 2019 - 3:44PM
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 offering (the
"Offering") of $650 million aggregate principal amount of 3⅜%
Senior Notes due 2029 (the "Notes"). The Offering is expected to
close on September 26, 2019, 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 $640.2
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 Andaz Maui at
Wailea Resort in Hawaii and the 1 Hotel South Beach in Miami Beach,
Florida, each of which has received LEED Silver certification. Host
L.P. intends to initially use the net proceeds from the offering,
together with cash on hand, to redeem all of Host L.P.’s $300
million aggregate principal amount of 6% Series Z senior notes due
2021 and $350 million aggregate principal amount of 5¼% Series B
senior notes due 2022. Pending application of the net proceeds,
Host L.P. may invest the net proceeds in short-term securities.
Wells Fargo Securities, LLC, Deutsche Bank
Securities Inc., Goldman Sachs & Co. LLC, BofA Securities,
Inc., J.P. Morgan Securities LLC and Morgan Stanley & Co. LLC
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 September 12, 2019. A copy of the
final prospectus supplement and the accompanying prospectus
relating to the Notes may be obtained, when available, by
contacting 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,
Deutsche Bank Securities Inc., Attn: Prospectus Group, 60 Wall
Street, New York, NY 10005-2836, telephone: (800) 503-4611 or
email: prospectus.CPDG@db.com, and Goldman Sachs & Co. LLC,
Attn: Prospectus Department, 200 West Street, New York, NY 10282,
telephone: (866) 471-2526, fax: (212) 902-9316 or email:
prospectus-ny@ny-email.gs.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: 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; changes in
national and local economic and business conditions and other
factors such as natural disasters, pandemics 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 REIT 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.
Michael BluhmChief Financial Officer240.744.5110
Gee LingbergSenior Vice President240.744.5275
Host Hotels and Resorts (NYSE:HST)
Historical Stock Chart
From Apr 2024 to May 2024
Host Hotels and Resorts (NYSE:HST)
Historical Stock Chart
From May 2023 to May 2024