Host Hotels & Resorts, Inc. Announces Amended And Extended Credit Facility
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Host Hotels & Resorts, Inc. Announces Amended And Extended Credit Facility
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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 2007-05-30
Host Hotels & Resorts, Inc. (NYSE:HST) today announced that it successfully amended its existing bank credit facility for Host Hotels & Resorts, L.P. to increase the size, extend the maturity and modify the terms of the facility, including lowering the rate of interest on borrowings. The size of the facility has been increased to $600 million, with an accordion feature that allows for additional borrowing capacity up to $1 billion. The facility’s maturity has been extended three years to September 2011, and also may be extended under certain circumstances for an additional year. The interest rate spread for LIBOR-based borrowings under the amended facility has been reduced to 65 to 150 basis points over LIBOR, depending on the Company’s leverage ratio, a reduction from 200 to 375 basis points under the existing facility, and the unused commitment fee on the facility ranges from 10 to 15 basis points. Upon closing, the interest rate spread for LIBOR-based borrowings on the facility will be 65 basis points based on the Company’s current leverage ratio. Like the existing facility, the amended facility contains a sub-limit for borrowings in Canadian Dollars, and, in addition, the amended facility contains a sub-limit for borrowings in Euros and British Pounds Sterling. There are currently no amounts outstanding under the facility.
Deutsche Bank Securities Inc., Banc of America Securities LLC and Citicorp North America Inc. acted as joint-lead arrangers and joint book running managers.
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