Hilton lifts seven-year term B to $2.12 billion, revises OID to 99.75

By Sara Rosenberg

New York, Nov. 2 – Hilton Worldwide Finance LLC upsized its seven-year covenant-lite term loan B to $2.119 billion from $1.619 billion and tightened the original issue discount to 99.75 from 99.5, according to a market source.

Pricing on the seven-year term loan remained at SOFR+10 basis points CSA plus 200 bps with a 0% floor.

No changes were made to the company’s $1 billion covenant-lite amended and extended term loan B due June 2028 that is priced at SOFR+10 bps CSA plus 175 bps with a 0% floor and an original issue discount of 99.5.

The term loans still have 101 soft call protection for six months.

Ratings on the now $3.119 billion of term loans, up from $2.619 billion, are expected to remain at Baa2/BBB- and corporate ratings are expected to remained at Ba1/BB+.

Deutsche Bank Securities Inc. is the left lead bookrunner on the deal.

Recommitments were scheduled to be due at 4:30 p.m. ET on Thursday, the source added.

Proceeds will be used to refinance an existing term loan B through a partial two-year extension with the 2028 term loan and the new seven-year term loan, and the funds from the upsizing will be used for general corporate purposes, including to add cash to the balance sheet.

Hilton is a McLean, Va.-based hospitality company.

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