Debt

On September 10, 2015, we entered into a $500 million term loan (“2015 Term Loan Facility”) by exercising the accordion feature of our existing credit facility and drew $300 million on the 2015 Term Loan Facility. We have the option to draw all or a portion of the remaining $200 million through March 8, 2016. The 2015 Term Loan Facility matures in September 2020 and has a floating interest rate of LIBOR plus a margin ranging from 90 to 175 basis points (depending on Host L.P.’s long-term unsecured debt rating). Based on Host L.P.’s unsecured long-term debt rating, at September 30, 2015, our applicable margin is 110 basis points (or approximately a 1.3% all-in interest rate). During the quarter, we also had net repayments under the revolver portion of our credit facility of $55 million. As of September 30, 2015, we had $791 million of available capacity under the revolver portion of the credit facility.

During the third quarter, holders of $8.7 million of our 2.5% Exchangeable Senior Debentures due 2029 (the “Debentures”) elected to convert their debentures into 0.7 million shares of Host Inc. common stock.

The following paragraphs describe significant financing events that occurred subsequent to the end of the quarter:

On October 14, 2015, we issued $400 million of 4.5% Series F senior notes due February 2026 for proceeds of approximately $395 million, net of discounts, underwriting fees and expenses. Interest on the Series F senior notes is payable semi-annually in arrears on February 1 and August 1, commencing February 1, 2016. In contemplation of this issuance, we entered into interest rate hedging transactions that increased our effective interest rate on the 4.5% Series F senior notes to 4.8%. The net proceeds from the issuance of the Series F senior notes, along with cash on hand and an additional $100 million draw on the credit facility will be used to redeem $500 million of our 6% Series V senior notes due 2020 at an aggregate redemption price of $515 million. In October 2015, we gave notice to redeem these senior notes in November 2015.

On October 19, 2015, Host L.P. gave notice that it will redeem all of its outstanding Debentures in the amount of $391.3 million at a cash redemption price of 100% of the principal amount, plus accrued interest to the November 3, 2015 redemption date. As the current stock price exceeds the exchange price of $12.45, we expect the holders will elect to redeem the Debentures for shares of common stock, or approximately 32.1 million shares (including shares issued for debentures already exchanged). The last date by which holders have to elect to exchange is October 30, 2015.

On October 2, 2015, we drew an additional $70 million on our credit facility.