Hilton borrows remaining revolver funds in light of virus uncertainty

By Wendy Van Sickle

Columbus, Ohio, March 11 – Hilton Worldwide Holdings Inc. subsidiary Hilton Worldwide Finance LLC drew down the remaining capacity under its $1.75 billion revolving credit facility on March 5 as a precautionary measure in light of the coronavirus outbreak, according to an 8-K filing with the Securities and Exchange Commission.

At Dec. 31, the company had just $195 million outstanding under the revolver and $60 million in outstanding letters of credit.

The revolver’s current interest rate is 2.18%, according to the filing.

“Hilton increased its borrowings under the revolving credit facility as a precautionary measure in order to increase its cash position and preserve financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak,” the filing states.

The proceeds from the incremental borrowings are being held on Hilton’s balance sheet, resulting in total cash and cash equivalents of about $2.1 billion as of March 6.

Proceeds from the incremental borrowings may be used for working capital, general corporate or other purposes, Hilton reported.

Hilton is a McLean, Va.-based hospitality company.

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