By Paul A. Harris
Portland, Ore., Nov. 16 – Hilton Worldwide Holdings Inc. priced an upsized $1.9 billion of senior notes (Ba2/BB) in two tranches via indirect subsidiary Hilton Domestic Operating Co. Inc. in a Monday drive-by, according to market sources.
The deal, which was upsized from $1 billion, featured $800 million of 8.5-year notes that priced at par to yield 3¾%. The yield printed at the wide end of the 3½% to 3¾% yield talk. Initial talk was in the high 3% area.
The deal also featured $1.1 billion of 10.5-year notes that priced at par to yield 4%. The yield printed at the wide end of the 3¾% to 4% yield talk. Initial talk was 4%.
J.P. Morgan Securities LLC was on the left of a syndicate of banks leading the sale that also included Deutsche Bank Securities Inc., BofA Securities Inc., 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 redeem all of its outstanding 4¼% senior notes due 2024.
| Issuer: | Hilton Domestic Operating Co. Inc.
|
| Amount: | $1.9 billion, increased from $1 billion
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., BofA Securities Inc., Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC
|
| Trade date: | Nov. 16
|
| Settlement date: | Dec. 1
|
| Ratings: | Moody's: Ba2
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Drive-by
|
|
|
| 8.5-year notes
|
| Amount: | $800 million
|
| Maturity: | May 1, 2029
|
| Coupon: | 3¾%
|
| Price: | Par
|
| Yield: | 3¾%
|
| Spread: | 309 bps
|
| Call protection: | 3.5 years
|
| Price talk: | 3½% to 3¾%
|
|
|
| 10.5-year notes
|
| Amount: | $1.1 billion
|
| Maturity: | May 1, 2031
|
| Coupon: | 4%
|
| Price: | Par
|
| Yield: | 4%
|
| Spread: | 309 bps
|
| Call protection: | 5.5 years
|
| Price talk: | 3¾% to 4%
|
|
|
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