Wyndham prices tender offers for 9.875%, 6%, 7.375% senior notes

By Marisa Wong

Madison, Wis., March 9 - Wyndham Worldwide Corp. said it priced the previously announced tender offers for its $250 million of 9.875% senior notes due 2014, $800 million of 6% senior notes due 2016 and $250 million of 7.375% senior notes due 2020.

The total consideration for each $1,000 principal amount of 9.875% notes is $1,183.04, which was determined by reference to the bid-side yield of the 0.25% Treasury due Feb. 28, 2014 plus a spread of 85 basis points.

The total consideration per $1,000 principal amount of 6% notes is $1,150.69, which includes a $30.00 early tender premium for notes tendered by 5 p.m. ET on March 9, the early tender date. The total payment for the 6% notes was set using the 0.875% Treasury due Feb. 28, 2017 plus a spread of 165 bps.

For each $1,000 of 7.375% notes, the total consideration is $1,230.91, which also includes a $30.00 early tender premium. The total consideration for the 7.375% notes was set using the 2% Treasury due Feb. 15, 2022 plus a spread of 190 bps.

Holders tendering 6% notes and 7.375% notes after the early tender date will receive a tender offer consideration of $1,120.69 and $1,200.91, respectively. The tender offer consideration is equal to the total consideration less the early tender premium.

The company will also pay accrued interest up to but excluding the applicable settlement date.

As previously announced, the company will purchase any and all of the 9.875% notes in the any and all tender offer. In the maximum tender offer, it will purchase 6% notes first and, if the maximum tender amount has not been reached, 7.375% notes second.

The maximum tender amount is $500 million less the principal amount of 9.875% notes accepted for purchase in the any and all tender offer.

The any and all tender offer will expire at 5 p.m. ET on March 9. The maximum tender offer will expire at midnight ET on March 23.

The tender offers are subject to a financing condition. The company plans to fund the tender offers with the proceeds of an offering of senior debt securities.

The dealer mangers of the tender offers are J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and Deutsche Bank Securities Inc. (855 287-1922 or 212 250-7527). The tender agent is D.F. King & Co., Inc. (800 967-4617).

Wyndham is a hospitality company based in Parsippany, N.J.

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