The Howard Hughes Corporation® Announces Commencement Of Offering Of Senior Notes

Rhea-AI Summary

The Howard Hughes Corporation (NYSE: HHC) announced a private placement offering of $750 million in senior notes due 2028. The unsecured notes will be guaranteed by certain subsidiaries and are aimed at qualified institutional buyers under Rule 144A. Proceeds will be used for general corporate purposes, including repaying existing debt. The notes are not registered under the Securities Act, limiting their sale in the U.S. The offering is subject to market conditions and does not constitute an offer to sell or solicit purchases in unlawful jurisdictions.

Positive

• Proceeds of $750 million intended for general corporate purposes, including debt repayment.

Negative

• Notes are unsecured, potentially increasing financial risks.
• Private placement limits access to a wider pool of investors.

DALLAS, Aug. 5, 2020 /PRNewswire/ -- The Howard Hughes Corporation® (NYSE: HHC) (the "Company") today announced that it has commenced an offering through a private placement, subject to market and other conditions, of $750 million in aggregate principal amount of senior notes due 2028 (the "Notes"). The Notes will be unsecured senior obligations of the Company and will be guaranteed by certain subsidiaries of the Company.

The Company intends to use the net proceeds from the offering for general corporate purposes, including the repayment of certain existing indebtedness.

The Notes are being offered in a private placement, solely to persons reasonably believed to be qualified institutional buyers in reliance on the exemption from registration provided by Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), or outside the United States to persons other than "U.S. persons" in reliance on Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This notice does not constitute an offer to sell the Notes, nor a solicitation for an offer to purchase the Notes, in any jurisdiction in which such offer or solicitation would be unlawful.

About The Howard Hughes Corporation®
The Howard Hughes Corporation owns, manages and develops commercial, residential and mixed-use real estate throughout the U.S. Our assets include master planned communities, as well as operating properties and development opportunities including: the Seaport District in New York; Columbia, Maryland; The Woodlands®, The Woodlands Hills®, and Bridgeland® in the Greater Houston, Texas area; Summerlin®, Las Vegas; and Ward Village® in Honolulu, Hawai'i.

Forward-Looking Statements
Certain statements contained herein are "forward-looking statements" within the meaning of the federal securities laws. Statements that are not historical facts, including statements about our beliefs, intentions and expectations are forward-looking statements. Statements containing the words "anticipate," "believe," "estimate," "expect," "forecast," "intend," "likely," "may," "plan," "project," "realize," "should," "transform," "would," and other statements of similar expression constitute forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance and achievements to materially differ from any future results, performance and achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the following: (1) the Company's ability to consummate the offering of the Notes; (2) the intended use of proceeds from the offering; and (3) other factors discussed in our public filings, including the risk factors included in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q. Readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Except as required by applicable law, including the securities laws of the United States and the rules and regulations of the SEC, we are under no obligation to publicly update or revise any forward-looking statements after the date hereof.

Contacts
The Howard Hughes Corporation
Cristina Carlson, 646-822-6910
VP, Corporate Communications and Public Relations
cristina.carlson@howardhughes.com

For HHC Investor Relations
David O'Reilly, 214-741-7744
President and Chief Financial Officer
david.o'reilly@howardhughes.com

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SOURCE The Howard Hughes Corporation

FAQ

What is the purpose of Howard Hughes Corporation's $750 million senior notes offering?

The proceeds will be used for general corporate purposes, including the repayment of existing indebtedness.

Who can purchase the senior notes offered by Howard Hughes Corporation?

The notes are offered solely to qualified institutional buyers under Rule 144A and to non-U.S. persons outside the United States.

What are the risks associated with the senior notes from Howard Hughes Corporation?

The notes are unsecured, which may increase financial risks for investors.

When are the senior notes from Howard Hughes Corporation due?

The senior notes are due in 2028.