BETHESDA, MD Host Marriott Corp. has closed on a $130 million offering of Class C Cumulative Redeemable Preferred Stock with a fixed dividend rate of 10%, redeemable at par on or after March 27, 2006. The company plans to use the proceeds to satisfy a portion of its capital needs for the year, including capital investments in existing hotels, selective acquisition of additional properties, repayment of debt and other general corporate purposes.
The offer was underwritten by Morgan Stanley Dean Witter, Prudential Securities, UBS Warburg, Bear Stearns and Co. and Deutsche Banc Alex.Brown. A cash dividend of $0.0347 per share will be paid on April 13, 2001 to shareholders of record on March 30, 2001. The dividend for Class C preferred stock will be $2.50 on an annualized basis. (3/27/01)