Host Hotels & Resorts Announces Pricing Of $700 Million Of 5.500% Senior Notes Due 2035, By Host Hotels & Resorts, L.P.
Host Hotels & Resorts, Inc. (NASDAQ: HST) has announced the pricing of a $700 million offering of 5.500% Senior Notes due 2035 through its operating partnership, Host Hotels & Resorts, L.P. The offering is expected to close on August 12, 2024, with estimated net proceeds of $683 million. The company plans to use the proceeds to repay $525 million of outstanding borrowings under its revolver credit facility, including amounts used for recent hotel acquisitions, and for general corporate purposes. The offering is being made through a shelf registration statement and is managed by major financial institutions.
Host Hotels & Resorts, Inc. (NASDAQ: HST) ha annunciato la determinazione del prezzo di un'offerta di 700 milioni di dollari di Note Senior al 5.500% in scadenza nel 2035 attraverso la sua partnership operativa, Host Hotels & Resorts, L.P. Si prevede che l'offerta si chiuda il 12 agosto 2024, con introiti netti stimati di 683 milioni di dollari. L'azienda prevede di utilizzare i proventi per rimborsare 525 milioni di dollari di prestiti in essere sotto il suo contratto di credito revolving, inclusi gli importi utilizzati per recenti acquisizioni di hotel, e per scopi aziendali generali. L'offerta viene effettuata attraverso una registrazione congiunta e è gestita da importanti istituzioni finanziarie.
Host Hotels & Resorts, Inc. (NASDAQ: HST) ha anunciado el precio de una oferta de 700 millones de dólares de Notas Senior al 5.500% con vencimiento en 2035 a través de su asociación operativa, Host Hotels & Resorts, L.P. Se espera que la oferta cierre el 12 de agosto de 2024, con ingresos netos estimados de 683 millones de dólares. La compañía planea utilizar los fondos para pagar 525 millones de dólares de préstamos pendientes bajo su línea de crédito revolvente, incluidos los montos utilizados para adquisiciones recientes de hoteles, y para fines corporativos generales. La oferta se realiza a través de una declaración de registro y es gestionada por importantes instituciones financieras.
Host Hotels & Resorts, Inc. (NASDAQ: HST)는 운영 파트너십인 Host Hotels & Resorts, L.P.를 통해 2035년 만기 5.500%의 7억 달러 규모의 시니어 노트 발행 가격을 발표했습니다. 이 제안은 2024년 8월 12일에 마감될 것으로 예상되며, 예상 순수익은 6억 8천 3백만 달러입니다. 회사는 이 수익을 사용하여 5억 2천 5백만 달러의 기존 차입금을 상환하고 최근 호텔 인수에 사용된 금액 및 일반 기업 용도로 사용할 계획입니다. 이 제안은 선반 등록 명세서를 통해 이루어지며 주요 금융 기관이 관리합니다.
Host Hotels & Resorts, Inc. (NASDAQ: HST) a annoncé le prix d'une offre de 700 millions de dollars de billets senior à 5,500% arrivant à échéance en 2035 par l'intermédiaire de son partenariat opérationnel, Host Hotels & Resorts, L.P. L'offre devrait se clôturer le 12 août 2024, avec des produits nets estimés à 683 millions de dollars. La société prévoit d'utiliser les produits pour rembourser 525 millions de dollars d'emprunts en cours dans le cadre de son crédit renouvelable, y compris les montants utilisés pour des acquisitions hôtelières récentes, et pour des besoins corporatifs généraux. L'offre est réalisée via une déclaration d'enregistrement et est gérée par de grandes institutions financières.
Host Hotels & Resorts, Inc. (NASDAQ: HST) hat die Preisfestsetzung für ein Angebot von 700 Millionen Dollar an 5,500% nachrangigen Anleihen mit Fälligkeit im Jahr 2035 über ihre Betriebspartnerschaft, Host Hotels & Resorts, L.P., bekannt gegeben. Die Platzierung wird voraussichtlich am 12. August 2024 abgeschlossen, mit geschätzten Nettoerlösen von 683 Millionen Dollar. Das Unternehmen plant, die Erlöse zu verwenden, um 525 Millionen Dollar ausstehenden Darlehen im Rahmen seines revolvierenden Kreditrahmens zurückzuzahlen, einschließlich Beträgen, die für kürzliche Hotelakquisitionen verwendet wurden, und für allgemeine Unternehmenszwecke. Das Angebot erfolgt über eine Shelf-Registrierungsanmeldung und wird von großen Finanzinstituten verwaltet.
- Successful pricing of $700 million in senior notes
- Expected net proceeds of $683 million
- Repayment of $525 million in outstanding borrowings
- Potential for funding future hotel acquisitions
- Increase in long-term debt with 5.500% interest rate
Insights
Host Hotels & Resorts' $700 million senior notes offering at
This senior notes offering by Host Hotels & Resorts demonstrates the company's proactive approach to capital management in the competitive lodging REIT space. By using the proceeds to repay revolver borrowings and fund recent high-profile acquisitions like The Ritz-Carlton O'ahu and 1 Hotel Central Park, Host is strategically positioning itself in premium markets. This move aligns with the industry trend of focusing on luxury and upscale properties in key destinations. The company's ability to secure financing at
Host Hotels & Resorts' latest debt offering signals confidence in the recovery and growth prospects of the hospitality sector. The company's focus on repaying revolver borrowings and funding recent acquisitions suggests a bullish outlook on travel demand, particularly in the luxury segment. This aligns with broader market trends showing resilience in high-end travel. However, investors should consider potential risks such as economic uncertainties and their impact on discretionary spending. The successful pricing of the notes indicates strong investor appetite for lodging REITs, which could positively influence sector sentiment. The use of proceeds for 'general corporate purposes' provides Host with flexibility to capitalize on market opportunities, potentially enhancing its competitive position. Overall, this offering strengthens Host's financial position, but its long-term impact will depend on the company's execution in a dynamic hospitality landscape.
BETHESDA, Md., Aug. 07, 2024 (GLOBE NEWSWIRE) -- Host Hotels & Resorts, Inc. (NASDAQ: 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
The estimated net proceeds of the Offering, after deducting the underwriting discount, de minimis original issue discount and fees and expenses, are expected to be approximately
Goldman Sachs & Co. LLC, BofA Securities, Inc., J.P. Morgan Securities LLC, Wells Fargo Securities, LLC, Morgan Stanley & Co. LLC and PNC Capital Markets 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 9, 2024 and a preliminary prospectus supplement filed with the Securities and Exchange Commission on August 7, 2024. A copy of the final prospectus supplement and the accompanying prospectus relating to the Notes may be obtained, when available, by contacting Goldman Sachs & Co. LLC, at 200 West Street, New York, New York 10282, telephone: (866) 471-2526, or by email: prospectus-ny@ny.email.gs.com; BofA Securities, Inc., at 201 North Tryon Street, NC1-022-02-25, Charlotte, NC 28255, Attention: Prospectus Department, or Toll-free: 1-800-294-1322, or by email at dg.prospectus_requests@bofa.com; J.P. Morgan Securities LLC, at 383 Madison Avenue, New York, New York 10179, Attention: Investment Grade Syndicate Desk – 3rd Floor, or by calling (collect) (212) 834-4533; and Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000 Minneapolis, MN 55402, Attention: WFS Customer Service, by email: wfscustomerservice@wellsfargo.com or Toll-Free: 1-800-645-3751. 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.
FORWARD LOOKING STATEMENTS
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: 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; our ability to close this Offering and apply the proceeds as currently intended; other changes 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 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.
| SOURAV GHOSH Chief Financial Officer (240) 744-5267 | JAIME MARCUS Investor Relations (240) 744-5117 ir@hosthotels.com |
FAQ
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