Host Hotels & Resorts, Inc. Announces Proposed Private Placement of Exchangeable Senior Debentures Due 2029 By Host Hotels & Res
December 15 2009 - 8:56AM
PR Newswire (US)
BETHESDA, Md., Dec. 15 /PRNewswire-FirstCall/ -- Host Hotels &
Resorts, Inc. (NYSE:HST) today announced that Host Hotels &
Resorts, L.P., for whom the Company acts as sole general partner,
is proposing to offer in a private placement $300 million aggregate
principal amount of Exchangeable Senior Debentures due 2029 (the
"Debentures"), subject to market and other customary conditions.
(Logo: http://www.newscom.com/cgi-bin/prnh/20060417/HOSTLOGO ) An
additional $60 million of Debentures may be offered if the initial
purchasers exercise their right to acquire additional Debentures to
cover overallotments, if any. As the offering is a private
placement, it will not be made to the general public. The
Debentures will be offered only to qualified institutional buyers
in accordance with Rule 144A under the Securities Act of 1933, as
amended. The Debentures will be exchangeable upon the occurrence of
certain events into cash, shares of Host Hotels & Resorts, Inc.
common stock or a combination of cash and shares of common stock,
at the Company's option. The net proceeds from the sale of the
Debentures are intended to be used for debt repayment, including to
redeem, together with available cash, all or a portion 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
to be offered 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 jurisdiction in which
such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such
jurisdiction. 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. 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 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: national and local economic and business
conditions, including the potential for terrorist attacks, 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 December 14,
2009, 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/
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