New Issue: Hilton sells upsized $1 billion senior notes due January 2030 at par to yield 4 7/8%

By Paul A. Harris

Portland, Ore., June 10 – Hilton Domestic Operating Co. Inc., an indirect subsidiary of Hilton Worldwide Holdings Inc., priced an upsized $1 billion issue of senior notes due Jan. 15, 2030 (Ba2/BB+) at par to yield 4 7/8% in a quick-to-market Monday trade, according to a syndicate source.

The issue size was increased from $750 million.

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 Morgan Stanley & Co. LLC.

The McLean, Va.-based hospitality company plans to use the proceeds to repay its senior secured credit facilities, with any remaining proceeds to be used for general corporate purposes, which may include, but are not limited to, funding certain share repurchases under its share repurchase program.

Issuer:	Hilton Domestic Operating Co. Inc.
Amount:	$1 billion, increased from $750 million
Maturity:	Jan. 15, 2030
Securities:	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 Morgan Stanley & Co. LLC
Co-managers:	Capital One Securities Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., MUFG, NatWest, PNC Capital Markets LLC, Standard Chartered, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc.
Coupon:	4 7/8%
Price:	Par
Yield:	4 7/8%
Spread:	274 bps
First call date:	Jan. 15, 2025
Trade date:	June 10
Settlement date:	June 20
Ratings:	Moody's: Ba2
	S&P: BB+
Distribution:	Rule 144A and Regulation S with registration rights
Marketing:	Quick to market

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