Hilton plans to price $1.5 billion 11-year senior notes on Tuesday; whisper is 4%

By Paul A. Harris

Portland, Ore., Jan. 19 – Hilton Domestic Operating Co. Inc. plans to price a $1.5 billion offering of 11-year senior notes in a Tuesday drive-by trailing a mid-morning conference call with investors, according to market sources.

Whispers in the market have the deal coming to yield 4%, a source said.

BofA Securities Inc. is the left bookrunner. 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 are the joint bookrunners.

Capital One Securities Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., MUFG, NatWest Markets Securities Inc., PNC Capital Markets LLC, Standard Chartered Bank, Truist Securities Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S notes become callable after 5.5 years at par plus 50% of coupon.

The Cisco, Tex.-based hospitality company plans to use the proceeds plus available cash to redeem all $1.5 billion of its 2026 notes outstanding.

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