Host Hotels & Resorts, Inc. Announces $500 Million Term Loan
BETHESDA, Md., July 26, 2012 /PRNewswire/ -- Host Hotels & Resorts, Inc. (NYSE: HST) today announced that it has closed on a term loan for $500 million ("Term Loan") through an amendment and restatement of its existing credit facility. The Term Loan has a five-year maturity and the interest rate spread depends on the Company's leverage ratio. Based on the Company's current leverage ratio, the Term Loan has a floating interest rate of LIBOR plus 180 basis points (or approximately a 2.0% all-in interest rate). Proceeds from the Term Loan will be used to repay a portion of the revolver draw associated with the Company's recent acquisition of the 888-room Grand Hyatt Washington, D.C., as well as to redeem $400 million of senior notes. The Term Loan was arranged by Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated and J.P. Morgan Securities, LLC, as joint lead arrangers and joint book runners.
Larry K. Harvey, executive vice president and chief financial officer, commented, "We are very pleased with this transaction and the continued support of our banks. We are also pleased to welcome a few new banks to the lending group. Since the beginning of the year and after taking into consideration our expected use of proceeds, we have increased our weighted average debt maturity by approximately six months and decreased our weighted average interest rate by over 55 basis points."
ABOUT HOST HOTELS & RESORTS
Host Hotels & Resorts, Inc. is an S&P 500 and Fortune 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 105 properties in the United States and 16 properties internationally totaling approximately 65,000 rooms. The Company also holds non-controlling interests in a joint venture in Europe that owns 13 hotels with approximately 4,200 rooms and a joint venture in Asia that owns one hotel with approximately 300 rooms in Australia and a minority interest in seven hotels with approximately 1,750 rooms in India, two of which recently opened in Bangalore and five that are in various stages of development in two cities. 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®, Le Meridien®, The Luxury Collection®, Hyatt®, Fairmont®, Four Seasons®, Hilton®, Swissotel®, ibis®, Pullman®, and Novotel®* in the operation of properties in over 50 major markets worldwide. 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.
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