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Hilton Worldwide plans to start roadshow Thursday for $3.25 billion of notes in three tranches
By Paul A. Harris
Portland, Ore., Sept. 18 - Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. plan to begin a roadshow for $3.25 billion of high-yield notes in three tranches on Thursday, according to a syndicate source.
The deal is coming in the form of a single $1.25 billion tranche of Rule 144A for life secured notes and $2 billion of unsecured notes in two tranches, formatted as Rule 144A with registration rights.
The $1.25 billion of eight-year first-lien senior secured notes become callable in three years at par plus 50% of the coupon and feature a special call provision that allows the issuer to redeem 10% of the secured notes annually at 103 during the non-call period.
The $2 billion of senior unsecured notes are coming in tranches of eight-year notes, which become callable in three years at par plus 50% of the coupon, and 10-year notes, which become callable in five years at par plus 50% of the coupon.
The sizes of the senior unsecured notes tranches remain to be determined.
Pricing is expected in the early to middle part of the week ahead.
BofA Merrill Lynch is the left bookrunner. Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC are the joint bookrunners.
Mitsubishi, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC, Macquarie Capital, RBS Securities Inc. and Blackstone are the co-managers.
The notes in all three tranches feature three-year 40% equity clawbacks and 101% poison puts.
The McLean, Va.-based hospitality company plans to use the proceeds to refinance debt.
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