New Issue: Hilton Worldwide prices $1 billion senior notes in two tranches

By Paul A. Harris

Portland, Ore., March 22 – Hilton Worldwide Holdings Inc. priced $1 billion of senior notes (Ba2/BB+) in two tranches in a Friday drive-by, according to market sources.

The deal included a $550 million tranche of five-year notes that price at par to yield 5 7/8%. The yield printed in the middle of yield talk in the 5 7/8% area. Initial guidance was in the low-6% area.

It also included a $450 million tranche of eight-year notes that priced at par to yield 6 1/8%. The yield printed in the middle of yield talk in the 6 1/8% area. Early guidance had the eight-year notes pricing 25 basis points behind the five-year notes.

The notes were sold via issuer Hilton Domestic Operating Co. Inc.

BofA Securities Inc. was the left bookrunner. Joint bookrunners were Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Truist Securities Inc.

The McLean, Va.-based hospitality company plans to use the proceeds for general corporate purposes, including debt repayment, investments and acquisitions.

Issuer:	Hilton Domestic Operating Co. Inc.
Amount:	$1 billion
Issue:	Senior notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Truist Securities Inc.
Co-managers:	Capital One Securities Inc., PNC Capital Markets LLC, Standard Chartered Bank, U.S. Bancorp Investments Inc., Fifth Third Securities Inc., HSBC Securities (USA) Inc., NatWest Markets Securities Inc., Santander US Capital Markets LLC and Scotia Capital (USA) Inc.
Trade date:	March 22
Settlement date:	March 26
Ratings:	Moody’s: Ba2
	S&P: BB+
Distribution:	Rule 144A and Regulation S for life
Marketing:	Drive-by
Five-year notes
Amount:	$550 million
Maturity:	April 1, 2029
Coupon:	5 7/8%
Price:	Par
Yield:	5 7/8%
Spread:	168 bps
First call:	April 1, 2026 at 102.938
Price talk:	5 7/8% area
Eight-year notes
Amount:	$450 million
Maturity:	April 1, 2032
Coupon:	6 1/8%
Price:	Par
Yield:	6 1/8%
Spread:	191 bps
First call:	April 1, 2027 at 103.063
Price talk:	6 1/8% area

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