Hilton Worldwide reduces term loan B size to $3.42 billion

By Sara Rosenberg

New York, April 11 – Hilton Worldwide Finance LLC downsized its covenant-light term loan B (Baa3/BBB-) due Oct. 25, 2023 to $3,419,000,000 from $3,919,000,000, according to a market source.

Pricing on the loan remained at Libor plus 175 basis points with a 0% Libor floor and a par issue price.

The term loan still has 101 soft call protection for six months.

Deutsche Bank Securities Inc. and Goldman Sachs Bank USA are the bookrunners on the deal.

Proceeds will be used to reprice an existing term loan down from Libor plus 200 bps with a 0% Libor floor.

The downsizing of the loan is a result of plans to pay down $500 million of the term loan B from incremental bond proceeds being raised through a recent senior notes offering that was upsized to $1.5 billion from $500 million.

Allocations are expected on Thursday, the source added.

Hilton is a McLean, Va.-based hospitality company.

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