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Prospect News home > News index > List of issuers H > Headlines for Hilton Worldwide Holdings Inc. > News item |
S&P gives BB to Hilton notes
S&P said it assigned its BB issue-level rating and 4 recovery rating to the proposed $1.5 billion senior notes due 2032 to be issued by Hilton Domestic Operating Co. Inc., a wholly owned subsidiary of Hilton Worldwide Holdings Inc.
Hilton plans to use the debt issuance proceeds to redeem all of the $1.5 billion 5 1/8% senior notes due 2026, as well as to pay the related redemption premium and fees.
“Because this is largely a refinancing transaction, it is approximately leverage-neutral and does not impair recovery prospects for unsecured noteholders.
“Therefore, our issue-level rating assigned to the proposed unsecured notes is BB, the same as the BB rating on the company's existing senior unsecured debt. The 4 recovery rating reflects our expectation for average (30%-50%; rounded estimate: 30%) recovery for senior unsecured lenders in the event of a payment default,” S&P said in a news release.
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