New Issue-Starwood Hotels sells $600 mln in 2-part sale

May 16 (Reuters) - Starwood Hotels & Resorts Worldwide Inc
(HOT.N: Quote, Profile, Research), parent of the St. Regis, Westin and Sheraton chains,
on Friday sold $600 million in a two-part debt sale, said
market sources.

The size of the offering was increased from an originally
planned $350 million.

Banc of America Securities, Merrill Lynch, JP Morgan and
Morgan Stanley were the joint bookrunning managers for the
sale.
BORROWER: STARWOOD HOTELS AND RESORTS WORLDWIDE INC
FIRST TRANCHE:
AMT $200 MLN COUPON 6.25 PCT MATURITY 2/15/2013
TYPE REOPEN NTS ISS PRICE 100.747* FIRST PAY 8/15/2008
MOODY'S Baa3 YIELD N/A SETTLEMENT 5/23/2008
S&P BBB-MINUS SPREAD 300 BPS PAY FREQ SEMI-ANNUAL
FITCH TRIPLE-B MORE THAN TREAS MAKE-WHOLE CALL 35 BPS**
SECOND TRANCHE:
AMT $400 MLN COUPON 6.75 PCT MATURITY 5/15/2018
TYPE NOTES ISS PRICE 100 FIRST PAY 11/15/2008
MOODY'S Baa3 YIELD 6.75 PCT SETTLEMENT 5/23/2008
S&P BBB-MINUS SPREAD 296.6 BPS PAY FREQ SEMI-ANNUAL
FITCH TRIPLE-B MORE THAN TREAS MAKE-WHOLE CALL 45 BPS**
* PLUS ACCRUED INTEREST FROM 2/15/2008
** $101 COC PUT