Host Marriott Corporation (NYSE:HMT) today announced that it
successfully amended its existing bank credit facility to modify the financial covenants to provide
additional flexibility over the remainder of the term. Under the amended facility, the Company has the
ability to borrow $250 million.
The facility, which matures in June 2005, is led by Deutsche Bank Trust Company Americas and
Bank of America, N.A. The face amount of the facility will remain at $400 million, which will
automatically reduce to $300 million no later than November 2003. There are currently no amounts
outstanding under the facility.
Edward Walter, executive vice president and chief financial officer, commented, “We are
extremely pleased with this transaction. The amended credit facility provides us greater flexibility and
access of $250 million of undrawn capacity. The combination of the amended facility, plus the significant
cash balance we are maintaining, positions us to weather the challenging operating environment as well as
take advantage of future opportunities.”
Host Marriott is a Fortune 500 lodging real estate company that currently owns or holds
controlling interests in 122 upscale and luxury hotel properties primarily operated under premium brands
such as Marriott, Ritz-Carlton, Hyatt, Four Seasons, Swiss™tel and Hilton. For further information, please
visit the Company’s website at www.hostmarriott.com.