Hilton reveals talk on $5.85 billion in term loans with launch

By Sara Rosenberg

New York, Sept. 17 - Hilton Worldwide Holdings Inc. came out with price talk on its $850 million five-year covenant-light term loan B and $5 billion seven-year covenant-light term loan B-2 in connection with its bank meeting on Tuesday, according to a market source.

The term loan B is talked at Libor plus 300 basis points with a 1% Libor floor and an original issue discount of 991/2, and the term loan B-2 is talked at Libor plus 325 bps to 350 bps with a 1% Libor floor and a discount of 99, the source said.

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

The company's $6.85 billion credit facility (Ba3/BB) also includes a $1 billion revolver.

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.

Proceeds from the credit facility and a notes offering will be used to refinance existing debt.

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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