Debt

Senior notes. On August 9, 2012, we issued $450 million of 4³/₄% Series C senior notes due 2023 for net proceeds of approximately $443 million. On September 5, 2012, a portion of the proceeds were used to redeem the $250 million of 6³/₈% Series O senior notes due 2015 for a redemption price of $253 million and $150 million of 6³/₄% Series Q senior notes due 2016 for a redemption price of $153 million. Our total debt extinguishment costs included in interest expense for the transactions completed during the third quarter of 2012 were $14 million.

Term loan. On July 25, 2012, we entered into a $500 million term loan (“Term Loan”) through an amendment of our credit facility. On August 27, 2012, a portion of proceeds were used to redeem $400 million of 6³/₈% Series O senior notes at a redemption price of $404 million. The Term Loan has a five-year maturity and a floating interest rate of LIBOR plus 180 basis points based on our leverage ratio at September 7, 2012 (or approximately a 2.0% all-in interest rate).

Credit facility. During the third quarter, we drew $105 million on the revolver portion of our credit facility to facilitate the acquisition of the Grand Hyatt Washington, D.C. and to invest in the Euro JV Fund II in connection with its acquisition of the Le Méridien Grand Hotel in Nuremberg, Germany. At September 7, 2012, we have $751 million of remaining available capacity under the revolver portion of our credit facility.