By Cristal Cody and Paul A. Harris
Tupelo, Miss., April 21 – Hyatt Hotels Corp. priced an upsized $900 million of senior notes (Baa3/BBB-) in two parts on Tuesday, according to a market source and an FWP filing with the Securities and Exchange Commission.
Hyatt sold $450 million of five-year notes at par to yield 5.375%.
The notes were talked to print at the 5.875% area.
A $450 million tranche of 10-year notes priced at par to yield 5.75%.
Initial price talk on the 10-year notes was in the 6.25% area.
The deal was upsized by $100 million, or $50 million per tranche.
Goldman Sachs & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Fifth Third Securities Inc., Scotia Capital USA Inc. and SunTrust Robinson Humphrey Inc. were the bookrunners.
The coupons feature 25 basis points step ups, per notch, for downgrades from Moody's Investors Service and/or S&P Global Ratings. The step ups are capped at 200 bps. The step ups fall away should Moody's assign a rating of Baa1 or higher, or if S&P assigns a BBB+ or higher.
Proceeds will be used for general corporate purposes, which may include the repayment of outstanding borrowings under the company’s revolving credit facility, or any other general corporate purpose deemed necessary or advisable, and to pay related fees and expenses.
Chicago-based Hyatt Hotels operates full-service hotels, resorts and residential and vacation properties.
| Issuer: | Hyatt Hotels Corp.
|
| Amount: | $900 million
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co. LLC, BofA Securities Inc., J.P. Morgan Securities LLC, Fifth Third Securities Inc., Scotia Capital USA Inc. and SunTrust Robinson Humphrey Inc.
|
| Senior co-managers: | Credit Agricole Securities (USA) Inc., Deutsche Bank Securities Inc., PNC Capital Markets LLC and Wells Fargo Securities, LLC
|
| Co-managers: | SMBC Nikko Securities America, Inc., U.S. Bancorp Investments, Inc. and Siebert Williams Shank & Co., LLC
|
| Trade date: | April 21
|
| Settlement date: | April 23
|
| Ratings: | Moody’s: Baa3
|
| S&P: BBB-
|
| Distribution: | SEC registered
|
|
|
| Five-year notes
|
| Amount: | $450 million
|
| Maturity: | April 23, 2025
|
| Coupon: | 5.375%
|
| Price: | Par
|
| Yield: | 5.375%
|
| Call features: | Make-whole call any time before one month prior to maturity at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | 5.875% area
|
|
|
| 10-year notes
|
| Amount: | $450 million
|
| Maturity: | April 23, 2030
|
| Coupon: | 5.75%
|
| Price: | Par
|
| Yield: | 5.75%
|
| Call features: | Make-whole call any time before three months prior to maturity at Treasuries plus 50 bps; thereafter at par
|
| Price guidance: | 6.25% area
|
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