Hilton to launch $6.85 billion credit facility on Tuesday morning

By Sara Rosenberg

New York, Sept. 13 - Hilton Worldwide Holdings Inc. is set to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch a $6.85 billion credit facility, according to a market source.

Deutsche Bank Securities Inc., BofA Merrill Lynch, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding Inc. and Goldman Sachs Bank USA are the lead banks on the deal.

The facility consists of a $1 billion revolver, an $850 million five-year covenant-light term loan B and a $5 billion seven-year covenant-light term loan B-2, the source said.

Both term loans have 101 soft call protection for six months.

Proceeds will be used to refinance existing debt.

The company also expects to get new bonds as part of its refinancing, the source added.

The new debt is anticipated to be completed before the company closes on its recently announced initial public offering of common stock.

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

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