Hilton closes on new $1 billion revolver

By Sara Rosenberg

New York, Sept. 2 - Hilton Hotels Corp. obtained a $1 billion revolving credit facility due August 2008. Banc of America Securities LLC acted as joint lead arranger and sole book manager, BNY Capital Markets, Inc. served as joint lead arranger and syndication agent, and Wachovia Bank and BNP Paribas acted as co-documentation agents.

Pricing on the new facility remained at Libor plus 125 basis points - as with the facility it replaces - and is based on the better of Hilton's corporate debt ratings or its ratio of debt to EBITDA, according to a news release.

The facility replaces the company's existing $1.2 billion multi-year revolver expiring November 2004 and its $150 million 364-day revolver expiring November 2003. With this new facility in place, the company's next significant debt maturity will not occur until November 2007.

Proceeds will be used for general corporate purposes.

"We are very pleased with how well the syndication process went. The new facility gives us greater operating flexibility and ensures access to capital for the next five years," said Mariel A. Joliet, senior vice president and treasurer, in the release. "We believe the success of the syndication is due to the strong relationships we have forged with our bank group over the years, as well as our success in achieving substantial debt reduction and prudent balance sheet management."

Hilton is a Beverly Hills, Calif. owner, manager and franchiser of hotels, resorts and vacation ownership properties.

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