Hyatt begins tender offer for $250 million 6.875% notes due 2019

By Marisa Wong

Madison, Wis., April 25 - Hyatt Hotels Corp. said it began a cash tender offer to purchase any and all of its $250 million outstanding principal amount of 6.875% senior notes due 2019.

The offer began on Thursday and is scheduled to expire at 5 p.m. ET on May 14.

Holders who tender their notes by 5 p.m. ET on May 3, the early tender deadline, will be eligible to receive the total consideration, which includes an early tender premium of $30 per $1,000 principal amount of notes.

The total consideration will be determined using a reference yield based on the bid side price of the 2% U.S. Treasury security due Feb. 15, 2023 plus a fixed spread of 110 basis points. Pricing will be set at 2 p.m. ET on May 3.

Holders who tender after the early deadline will receive the offer consideration, which is the total consideration less the early tender premium.

The company will also pay accrued interest up to the settlement date.

Tendered notes may be withdrawn at any time on or prior to 5 p.m. ET on May 3.

The tender offer is conditioned on Hyatt receiving proceeds from new debt sufficient to fund the offer.

J.P. Morgan Securities LLC (866 834-4666 or 212 834-4811) and SunTrust Robinson Humphrey, Inc. (800 685-4786 or 404 926-5051) are the dealer managers. D.F. King & Co., Inc. (800 488-8095 or 212 269-5550). is the information agent and tender agent.

Hyatt is a Chicago-based hospitality company.

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