Moody’s assigns Ba1 to Hilton loan

Moody's Investors Service said it assigned a Ba1 rating to Hilton Worldwide Finance, LLC's proposed $750 million amendment and extension of its term loan B2.

Hilton's Ba2 corporate family rating, Ba2-PD probability of default rating, Ba1 bank credit facilities rating and Ba3 senior unsecured note rating are unchanged.

The outlook remains stable.

At the same time, Hilton will be repricing the $750 million term loan B2 and $3.209 billion term loan B2 to Libor plus 200 basis points to 225 bps. Moody's said it views the amendment and extension as a credit positive as it will push out the maturity of the $750 million by three years to 2023 from 2020.

The amendment will also reduce Hilton's interest expense by about $10 million annually.

Upon successful closing of the amendment and extension, Moody's said it will withdraw the rating on the $1 billion (now paid down to $750 million) term loan due 2020.

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