Hilton restructures, talks downsized $1.5 billion eight-year notes at 5¾% area; pricing Friday

By Paul A. Harris

Portland, Ore., Sept. 20 - Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. downsized and restructured their offering of high-yield notes, according to a syndicate source.

The deal, now comprised of a single $1.5 billion tranche of eight-year senior notes (B3/B), is talked to yield in the 5¾% area and is expected to price Friday afternoon.

A proposed $1.25 billion tranche of secured notes has been withdrawn, as has a proposed tranche of 10-year unsecured notes.

Meanwhile the company's term loan B-2 was upsized to $7.6 billion from $5 billion.

The senior notes offer is being led by left bookrunner BofA Merrill Lynch.

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 Rule 144A with registration rights notes become callable in three years at par plus 50% of the coupon. The notes feature a three-year 40% equity clawback and a 101% poison put.

The McLean, Va.-based hospitality company plans to use the proceeds to repay debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.