Starwood Hotels & Resorts Worldwide, Inc. (NYSE: HOT) announced today the closing of a 270 million euro denominated bank loan (approximately $252 million) with an initial interest rate of euribor plus 112.5 basis points. Euro denominated financing effectively hedges a portion of the Company`s European earnings, particularly after the recent completion of the 100% acquisition of CIGA, helping insulate the Company from further euro weakness. Proceeds will be used to further pay down the Company`s revolving credit facility, providing current availability in excess of $1 billion.
After the sale of more than $7 billion of assets, the Company has markedly improved its credit profile consistent with its goal to achieve an investment grade rating. The euro denominated financing proceeds have been directed to the revolver to maintain flexibility to retire $700 million of outstanding ITT bonds maturing in November 2000. The Company continues to monitor the bond market and will react opportunistically as conditions merit. Starwood has no other significant debt maturing until 2003 and the weighted average maturity of the Company`s debt portfolio exceeds five years.
Starwood Hotels & Resorts Worldwide, Inc., through its St. Regis, Luxury Collection, Westin, Sheraton, Four Points and W brands, is one of the leading hotel and leisure companies in the world with more than 725 hotels in 80 countries and 120,000 employees at its owned and managed properties. SOURCE Starwood Hotels & Resorts Worldwide, Inc.