Published on 3/7/2017 in the Prospect News High Yield Daily.
New Issue: Hilton Worldwide prices $1.5 billion senior notes in two tranches
By Paul A. Harris
Portland, Ore., March 7 – Hilton Worldwide Holdings Inc. priced $1.5 billion of senior notes (expected ratings Ba3/BB+) in two tranches on Tuesday, according to a syndicate source.
The short maturity tranche featured $900 million of eight-year notes that priced at par to yield 4 5/8%. The yield printed at the tight end of yield talk in the 4¾% area.
The long tranche features $600 million of 10-year notes that priced at par to yield 4 7/8%. The yield printed at the tight end of yield talk in the 5% area.
Goldman Sachs & Co. was the left bookrunner. BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays and Wells Fargo Securities LLC were the joint bookrunners.
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.
| Issuer: | Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp.
|
| Amount: | $1.5 billion
|
| Securities: | Senior notes
|
| Left bookrunner: | Goldman Sachs & Co. (left books)
|
| Joint bookrunners: | BofA Merrill Lynch, Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Morgan Stanley & Co. LLC, Barclays, Wells Fargo Securities LLC
|
| Co-managers: | Citigroup Global Markets Inc., SunTrust Robinson Humphrey Inc., Credit Agricole CIB, Blackstone, Credit Suisse Securities (USA) LLC, HSBC Securities, MUFG, NatWest, SMBC
|
| Trade date: | March 7
|
| Settlement date: | March 16
|
| Expected ratings: | Moody's: Ba3
|
| S&P: BB+
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Marketing: | Quick to market
|
|
|
| Eight-year notes
|
| Amount: | $900 million
|
| Maturity: | April 1, 2025
|
| Coupon: | 4 5/8%
|
| Price: | Par
|
| Yield: | 4 5/8%
|
| Call protection: | Three years
|
| Price talk: | 4¾% area
|
|
|
| 10-year notes
|
| Amount: | $600 million
|
| Maturity: | April 1, 2027
|
| Coupon: | 4 7/8%
|
| Price: | Par
|
| Yield: | 4 7/8%
|
| Call protection: | Five years
|
| Price talk: | 5% area
|
© 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.
