Park Hotels & Resorts to sell $500 million secured notes on Tuesday; whisper high 6% area to 7%

By Paul A. Harris

Portland, Ore., May 18 – Park Hotels & Resorts Inc. plans to price a $500 million offering of five-year senior secured notes (BB-) on Tuesday, according to market sources.

Initial guidance has the notes coming to yield in the high 6% area to 7%, a trader said.

The deal was scheduled to be shopped on a 12:30 p.m. ET investor conference call on Monday.

BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

BBVA Securities Inc., PNC Capital Markets LLC, Scotia Capital (USA) Inc., Sumitomo, Truist, Barclays, Deutsche Bank Securities Inc., RBC Capital Markets LLC, Credit Agricole CIB, Raymond James & Associates Inc., BNY Mellon Capital Markets LLC and Regions Securities LLC are the co-managers.

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

A special redemption provision enables the issuer to call 35% of the notes for the first 120 days, at a premium, with proceeds from any loans received from a governmental authority for relief of Covid-19 impact.

The notes also feature a two-year 40% equity clawback and a 101% poison put.

The issuing entities will be Park Intermediate Holdings LLC, PK Domestic Property LLC and PK Finance Co-Issuer Inc.

The Tysons, Va.-based lodging real estate investment trust plans to use $350 million the proceeds for general corporate purposes with the remainder to repay revolver debt.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.