Starwood Hotels & Resorts Worldwide, Inc. Calls for Redemption of Its Outstanding 3.5% Convertible Senior Notes Due 2023
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Starwood Hotels & Resorts Worldwide, Inc. Calls for Redemption of Its Outstanding 3.5% Convertible Senior Notes Due 2023
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Category: North America & West Indies / Carribean islands
This is a press release selected by our editorial committee and published online for free on 2006-05-08
Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) ("Starwood") announced today a call for redemption on June 5, 2006 for all of its outstanding 3.5% Convertible Senior Notes due 2023 (the "Notes") . The aggregate principal amount of the Notes is approximately $359 million. The Notes will be redeemed at the redemption price of $1,000 per $1,000 principal amount of the Notes plus accrued and unpaid interest up to, but not including, the redemption date.
Prior to 5:00 PM EST on June 1, 2006, holders may convert their Notes into Starwood common shares at a conversion rate of 24.765 Starwood shares per $1,000 principal amount of Notes. Pursuant to the indenture, Starwood has elected to settle the principal amount of any such conversion in cash, and the balance of any amounts owed in Starwood common shares (plus cash in lieu of fractional shares). Any notes not converted on or before close of business on June 1, 2006, will be automatically redeemed on June 5, 2006 for cash.
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