By Paul A. Harris
Portland, Ore., Sept. 20 - Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. priced a downsized and restructured $1.5 billion issue of eight-senior notes (B3/B/) at par to yield 5 5/8% on Friday, according to a syndicate source.
The yield printed at the tight end of yield talk set in the 5¾% area.
The roadshow, which was expected to continue into the week ahead, was cut short.
A proposed $1.25 billion tranche of secured notes was withdrawn, as was a proposed tranche of 10-year unsecured notes.
Meanwhile the term loan B-2 was upsized to $7.6 billion from $5 billion.
The left bookrunner was BofA Merrill Lynch.
Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities LLC were the joint bookrunners.
The McLean, Va.-based hospitality company plans to use the proceeds to repay debt.
| Issuers: | Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp.
|
| Amount: | $1.5 billion, downsized from $3.25 billion ($1.6 billion of proceeds shifted to a term loan)
|
| Maturity: | Oct. 15, 2021
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Deutsche Bank Securities Inc., Goldman Sachs & Co., Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, Wells Fargo Securities LLC
|
| Co-managers: | Mitsubishi, Barclays, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, HSBC, Macquarie Capital, RBS Securities Inc., Blackstone
|
| Coupon: | 5 5/8%
|
| Price: | Par
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| Yield: | 5 5/8%
|
| Spread: | 325 bps
|
| Call protection: | Three years
|
| Trade date: | Sept. 20
|
| Settlement date: | Oct. 4
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 5¾% area
|
| Marketing: | Roadshow, which was cut short as timing was moved forward
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