Host Marriott Corporation Announces That It Will Exercise Its Option to Cause the Conversion Rights of the Holders of the 6.75%
11 1월 2006 - 10:00PM
PR Newswire (US)
BETHESDA, Md., Jan. 11 /PRNewswire-FirstCall/ -- Host Marriott
Corporation (NYSE:HMT) announced today that it will exercise its
option to cause the conversion rights of its 6.75% convertible
subordinated debentures and the corresponding conversion rights of
the holders of the 6.75% Convertible Quarterly Income Preferred
Securities (CUSIP# 441079407) issued by the Host Marriott Financial
Trust (the "QUIPS") to expire. The Company is exercising this
option since the market price of its common stock has exceeded 120%
of the adjusted conversion price of the QUIPS for 20 out of the
last 30 trading days. The last reported sale price of the Company's
common stock as of January 10, 2005 was $19.50. The QUIPS currently
are convertible into 3.2537 shares of Host Marriott common stock
per $50 liquidation amount of preferred security, which equates to
an adjusted conversion price of $15.367. The conversion rights of
the QUIPS holders will expire at 5:00 p.m. (Eastern Standard Time)
on February 10, 2006. (Logo:
http://www.newscom.com/cgi-bin/prnh/20040324/HOSTMARRIOTTLOGO )
Additionally, on December 12, 2005 the Company gave notice to QUIPS
holders of a partial redemption of $100 million of QUIPS to occur
on January 11, 2006 and, in response to the notice, many holders
elected to convert their QUIPS securities that were subject to
redemption. If all of the QUIPS holders elect to convert their
remaining securities to Host Marriott common shares prior to the
expiration of their conversion rights, the aggregate conversions
(after taking into account conversions in response to the partial
redemption) will result in the issuance of approximately 30.9
million shares of Host Marriott common stock as well as a $492
million reduction of the Company's debt and the elimination of
approximately $32 million of related annual fixed charges. The
Company's 2006 full year guidance for Funds from Operations (FFO)
per diluted share will not be affected since QUIPS were already
reflected on a converted basis, and the Company's forecasted 2006
Net Income will increase approximately $30 million. This press
release contains forward-looking statements within the meaning of
federal securities regulations. These forward-looking statements
are identified by their use of terms and phrases such as
"anticipate," "believe," "could," estimate," "expect," "intend,"
"may," "plan," predict," "project," "will," "continue" and other
similar terms and phrases, including references to assumption and
forecasts of future results. Forward-looking statements are not
guarantees of future performance and involve known and unknown
risks, uncertainties and other factors which may cause the actual
results to differ materially from those anticipated at the time the
forward-looking statements are made. These risks include, but are
not limited to: national and local economic and business
conditions, including the potential for terrorist attacks, that
will affect occupancy rates at our hotels and the demand for hotel
products and services; operating risks associated with the hotel
business; risks associated with the level of our indebtedness and
our ability to meet covenants in our debt agreements; relationships
with property managers; our ability to maintain our properties in a
first-class manner, including meeting capital expenditure
requirements; our ability to compete effectively in areas such as
access, location, quality of accommodations and room rate
structures; changes in travel patterns, taxes and government
regulations which influence or determine wages, prices,
construction procedures and costs; our ability to complete pending
acquisitions and dispositions; and our ability to continue to
satisfy complex rules in order for us to qualify as a Real Estate
Investment Trust for federal income tax purposes and other risks
and uncertainties associated with our business described in the
Company's filings with the Securities and Exchange Commission.
Although the Company believes the expectations reflected in such
forward-looking statements are based upon reasonable assumptions,
it can give no assurance that the expectations will be attained or
that any deviation will not be material. All information in this
release is as of January 10, 2006, and the Company undertakes no
obligation to update any forward-looking statement to conform the
statement to actual results or changes in the Company's
expectations.
http://www.newscom.com/cgi-bin/prnh/20040324/HOSTMARRIOTTLOGO
http://photoarchive.ap.org/ DATASOURCE: Host Marriott Corporation
CONTACT: Kevin J. Jacobs, Vice President, +1-240-744-5212, or
Gregory J. Larson, Senior Vice President, +1-240-744-5120, both of
Host Marriott Corporation Web site: http://www.hostmarriott.com/
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