S&P gives Hilton notes BB

S&P said it assigned its BB issue-level and 4 recovery ratings to the proposed senior unsecured notes to be issued by Hilton Domestic Operating Co. Inc., a wholly-owned subsidiary of Hilton Worldwide Holdings Inc.

Hilton has not determined the offering amount yet, but S&P said it expects the maturities to be 2029 and 2031.

Hilton plans to use the proceeds to refinance debt, including the 4¼% senior notes due 2024, and for general corporate purposes.

“Because this is largely a refinancing transaction, it is approximately leverage-neutral, and it does not impair recovery prospects for unsecured noteholders. Therefore, our ratings on the proposed unsecured notes are the same as our ratings on Hilton's existing unsecured debt. The 4 recovery rating reflects our expectation for average (30%-50%; rounded estimate: 30%) recovery for unsecured lenders in the event of a payment default,” S&P said in a press release.

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