Starwood Announces Completion of its Cash Tender Offer for $300,000,000 Aggregate Principal Amount of Certain of its Outstanding Notes
|
|
Starwood Announces Completion of its Cash Tender Offer for $300,000,000 Aggregate Principal Amount of Certain of its Outstanding Notes
|
Category: Worldwide - Industry economy
- Figures / Studies
This is a press release selected by our editorial committee and published online for free on 2009-12-08
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today the completion of its cash tender offer (the “Tender Offer”) to purchase up to $300 million aggregate principal amount of its outstanding 7.875% Senior Notes due 2012 (CUSIP No. 85590AAD6/U85650AB2) (the “2012 Notes”) and its outstanding 6.250% Senior Notes due 2013 (CUSIP No. 85590AAK0) (the “2013 Notes” and, together with the 2012 Notes, the “Notes”). The Tender Offer expired at midnight, New York City time, on December 4, 2009 (the “Expiration Date”).
A total of $194,873,000 aggregate principal amount of the 2012 Notes (24.36% of the 2012 Notes outstanding) was tendered before the Expiration Date, all of which was accepted for purchase by Starwood pursuant to the terms of the Tender Offer. A total of $134,302,000 aggregate principal amount of the 2013 Notes (22.38% of the 2013 Notes outstanding) was tendered before the
Expiration Date, $105,130,000 of which (increased from the original maximum tender amount of $100 million) was accepted for purchase by Starwood pursuant to the terms of the Tender Offer.
Because 2013 Notes in excess of the maximum tender amount were tendered, Starwood accepted 2013 Notes for purchase on a pro rata basis among tendering holders thereof. Any tendered 2013 Notes that were not accepted for payment were returned without expense to the tendering holders.
Under the terms of the Tender Offer, holders of the 2012 Notes that validly tendered and did not withdraw their 2012 Notes prior to 5:00 p.m., New York City time, on November 19, 2009 (the “Early Tender Time”), were entitled to receive the Total Consideration of $1,060 per $1,000 principal amount, which included an early tender payment equal to $30 per $1,000 principal amount. Holders of the 2012 Notes that validly tendered their 2012 Notes after the Early Tender
Time but before midnight, New York City time, on the Expiration Date, received $1,030 per $1,000 principal amount of 2012 Notes. Holders of the 2013 Notes that validly tendered and did not withdraw their 2013 Notes prior to the Early Tender Time, were entitled to receive the Total Consideration of $1,020 per $1,000 principal amount, which included an early tender payment equal to $30 per $1,000 principal amount. Holders of the 2013 Notes who validly tendered their 2013 Notes after the Early Tender Time but before midnight, New York City time, on the Expiration Date, received $990 per $1,000 principal amount.
All holders that validly tendered their Notes in the Tender Offer and whose Notes were accepted for purchase by Starwood also received accrued and unpaid interest from the last interest payment date to, but not including, December 7, 2009, the settlement date.
Citigroup Global Markets Inc., BofA Merrill Lynch, Barclays Capital Inc., Deutsche Bank Securities Inc. and J.P. Morgan Securities Inc. acted as dealer managers for the Tender Offer.
|
|
