Hyatt Hotels collects early tenders for 21.6% of 6.875% notes due 2019

By Jennifer Chiou

New York, May 6 - Hyatt Hotels Corp. obtained early tenders for $54.1 million, or 21.6%, of its $250 million outstanding principal amount of 6.875% senior notes due 2019 in the cash tender offer for any and all of the notes, according to an 8-K filing with the Securities and Exchange Commission.

Holders who tendered their notes by 5 p.m. ET on May 3, the early tender deadline, will be eligible to receive the total consideration of $1,229.20 for each $1,000 principal amount of notes, which includes an early tender premium of $30.00 per $1,000 principal amount of notes.

As previously reported, the total consideration was set at 2 p.m. ET on May 3 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.

Holders who tender after the early deadline will receive the offer consideration of $1,199.20 per $1,000 of notes, or the total consideration less the early tender premium.

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

The offer began on April 25 and is scheduled to expire at 5 p.m. ET on May 14.

Tendered notes may not be withdrawn after 5 p.m. ET on May 3.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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