Hilton Worldwide to sell $1 billion two-part notes offering on Friday

By Paul A. Harris

Portland, Ore., March 22 – Hilton Worldwide Holdings Inc. plans to price $1 billion of senior notes (expected ratings Ba2/BB+) in two tranches in a Friday drive-by trailing a conference call with investors, according to market sources.

The Rule 144A and Regulation S for life deal includes five-year notes with initial guidance in the low-6% area, and eight-year notes with initial guidance which has them coming 25 basis points behind the five-year notes.

Minimum tranche sizes are $400 million.

Call protection is two years for the five-year notes and three years for the eight-year notes, with initial call premiums for the notes in both tranches to be set at par plus 50% of the respective coupons.

The notes in both tranches feature 40% equity clawbacks at par plus the full coupons during the respective non-call periods. They also feature change-of-control put provisions at 101.

BofA Securities Inc. is the left bookrunner. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Truist Securities Inc. are the joint bookrunners.

Capital One Securities Inc., PNC Capital Markets LLC, Standard Chartered Bank, U.S. Bancorp Investments Inc., Fifth Third Securities Inc., HSBC Securities (USA) Inc., NatWest Markets Securities Inc., Santander US Capital Markets LLC and Scotia Capital (USA) Inc. are the co-managers.

The McLean, Va.-based hospitality company plans to use the proceeds for general corporate purposes, including debt repayment, investments and acquisitions.

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