Published on 6/10/2019 in the Prospect News High Yield Daily.
New Issue: Hilton sells upsized $1 billion senior notes due January 2030 at par to yield 4 7/8%
By Paul A. Harris
Portland, Ore., June 10 – Hilton Domestic Operating Co. Inc., an indirect subsidiary of Hilton Worldwide Holdings Inc., priced an upsized $1 billion issue of senior notes due Jan. 15, 2030 (Ba2/BB+) at par to yield 4 7/8% in a quick-to-market Monday trade, according to a syndicate source.
The issue size was increased from $750 million.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC.
The McLean, Va.-based hospitality company plans to use the proceeds to repay its senior secured credit facilities, with any remaining proceeds to be used for general corporate purposes, which may include, but are not limited to, funding certain share repurchases under its share repurchase program.
Issuer: | Hilton Domestic Operating Co. Inc.
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Amount: | $1 billion, increased from $750 million
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Maturity: | Jan. 15, 2030
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Securities: | Senior notes
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Left bookrunner: | BofA Securities Inc.
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Joint bookrunners: | Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
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Co-managers: | Capital One Securities Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., MUFG, NatWest, PNC Capital Markets LLC, Standard Chartered, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
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Coupon: | 4 7/8%
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Price: | Par
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Yield: | 4 7/8%
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Spread: | 274 bps
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First call date: | Jan. 15, 2025
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Trade date: | June 10
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Settlement date: | June 20
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Ratings: | Moody's: Ba2
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| S&P: BB+
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Distribution: | Rule 144A and Regulation S with registration rights
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Marketing: | Quick to market
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