Hilton Worldwide to price $1.5 billion notes in two parts on Tuesday

By Paul A. Harris

Portland, Ore., March 7 – Hilton Worldwide Holdings Inc. plans to price a combined $1.5 billion of senior notes (expected ratings Ba3/BB+) in two parts on Tuesday following a mid-morning conference call with investors, according to a syndicate source.

The deal includes tranches of eight-year notes, which come with three years of call protection, and 10-year notes, which come with five years of call protection.

Tranche sizes remain to be determined.

Goldman Sachs & Co. is the left bookrunner for the Rule 144A and Regulation S with registration rights offering. BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and Wells Fargo Securities LLC are the joint bookrunners.

Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Credit Agricole CIB, Blackstone, Credit Suisse Securities (USA) LLC, HSBC Securities, MUFG, NatWest and SMBC Nikko are the co-managers.

The issuing entities will be indirect subsidiaries Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp.

The McLean, Va.-based hospitality company plans to use the proceeds, together with available cash, to redeem all $1.5 billion of its 2021 notes, with any remaining proceeds to be used for general corporate purposes.

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