WHITE PLAINS, N.Y., July 25 /PRNewswire/ -- 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.
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Related links:
http://www.starwoodlodging.com
Company News On-Call:
http://www.prnewswire.com/comp/443150.html or fax,
800-758-5804, ext. 443150
CONTACT:
Dan Gibson of Starwood Hotels & Resorts
Worldwide, Inc., 914-640-8175
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