Hilton to price $500 million eight-year notes in Tuesday drive-by, guided in 5¼% area

By Paul A. Harris

Portland, Ore., April 10 – Hilton Worldwide Holdings, Inc. plans to price a $500 million offering of eight-year senior notes (expected ratings Ba3/BB+) in a Tuesday drive-by, market sources say.

Early guidance has the deal coming with a yield in the 5¼% area.

BofA Merrill Lynch is leading the Rule 144A and Regulation S offering.

The notes come with three years of call protection.

The issuing entity is Hilton Domestic Operating Co. Inc., an indirect subsidiary of Hilton Worldwide Holdings.

The McLean, Va.-based hospitality company plans to use the proceeds, together with available cash and a draw on its revolver, to repurchase 10 million shares of Hilton common stock beneficially owned by HNA Tourism Group Co., Ltd., with any remaining proceeds to be used for general corporate purposes.

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