Debt

Senior Notes. In August 2011, we repurchased approximately $105 million face amount of 2⁵/8% exchangeable senior debentures (“2007 Debentures”), with a carrying value of $102 million, for $106 million and recorded a loss of approximately $4 million on the transaction. We have approximately $421 million face amount of the 2007 Debentures outstanding.

On May 27, 2011, we gave notice of our intent to redeem $150 million of the outstanding $325 million 3.25% exchangeable senior debentures (2004 Debentures). In June 2011, holders of approximately $134 million of the 2004 Debentures elected to exchange their debentures for approximately 8.8 million shares of Host Inc. common stock, rather than receive the cash redemption proceeds, while the remaining $16 million of debentures were redeemed for cash.

Mortgage Debt. On June 28, 2011, we transferred the £32 million ($52 million) mortgage on the Le Méridien Piccadilly, as well as the £38 million ($61 million) capital lease obligation, to the Euro JV Fund II.

Credit Facility. On June 28, 2011, we used the proceeds received from the transfer of the Le Méridien Piccadilly to the Euro JV Fund II to repay £25 million ($40 million) under the credit facility. We have $481 million of remaining available capacity under our credit facility as of September 9, 2011. Additionally, on September 9, 2011, we exercised our option to extend the maturity of our credit facility through September 9, 2012.