Hilton to sell $750 million senior notes due January 2030 on Monday

By Paul A. Harris

Portland, Ore., June 10 – Hilton Domestic Operating Co. Inc., an indirect subsidiary of Hilton Worldwide Holdings Inc., plans to price a $750 million offering of senior notes due January 2030 (existing Ba2/BB+) in a quick-to-market Monday trade following a late-morning conference call with investors, according to a syndicate source.

BofA Securities Inc. is the left bookrunner for the Rule 144A with registration rights offering. Deutsche Bank Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Barclays, Citigroup Global Markets Inc., Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are the joint bookrunners.

Capital One, Credit Agricole CIB, HSBC Securities (USA) Inc., MUFG, NatWest Investments, PNC Capital Markets LLC, Standard Chartered, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The notes, which have a tenor of 10.5 years, become callable after 5.5 years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the coupon and a 101% poison put.

The McLean, Va.-based hospitality company plans to use the proceeds to repay its senior secured credit facilities, with any remaining proceeds to be used for general corporate purposes, which may include, but are not limited to, funding certain share repurchases under its share repurchase program.

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