BETHESDA, MD-Host Marriott Corporation has closed on a $130 million offering of Class C cumulative redeemable preferred stock, which has a fixed dividend rate of 10%. The Class C preferred stock will be redeemable at par on or after March 27, 2006.
Marriott treasurer W. Edward Walter says the company believes this type of preferred stock will help the company lower its overall cost of capital and bolster its capital structure. “We plan to use the proceeds to satisfy a portion of our capital needs for the year, including capital investments in our existing hotels, selectively acquiring hotel properties, repaying debt, and for other general corporate purposes,” he says.