Host Marriott Corporation announced today that Host Marriott, L.P., for
whom the Company acts as sole general partner, is proposing to offer in a
private placement $375 million of exchangeable senior debentures due in
2024, subject to market conditions. An additional $75 million may be
raised if the initial purchasers exercise their right to acquire
additional debentures in connection with the offering. As the offering is
a private placement, it will not be made to the general public. Only
qualified institutional buyers may participate in the offering. The
debentures will be exchangeable into shares of Host Marriott common stock
upon the occurrence of certain events.
The net proceeds of the offering are expected to be used to redeem, in
part, Host Marriott, L.P.‘s 7 7/8% Series B Senior Notes due 2008.
The debentures to be offered have not been registered under the United
States Securities Act of 1933 and may not be offered or sold in the United
States absent registration or an applicable exemption from registration
requirements. The issuance of the debentures has been structured to allow
secondary market trading under Rule 144A under the Securities Act of 1933.
This release shall not constitute an offer to sell or a solicitation
of an offer to buy any security and shall not constitute an offer,
solicitation or sale of any securities in any jurisdiction where such an
offering would be unlawful.