New Issue: Hilton prices $1.5 billion 11-year notes at par to yield 3 5/8%

By Paul A. Harris

Portland, Ore., Jan. 19 – Hilton Domestic Operating Co. Inc. priced a $1.5 billion issue of 11-year senior notes (Ba2/BB) at par to yield 3 5/8% in a Tuesday drive-by, according to market sources.

The yield printed at the tight end of yield talk in the 3¾% area. Initial guidance was 4%.

BofA Securities Inc. was the left bookrunner. Joint bookrunners were 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.

The Cisco, Tex.-based hospitality company plans to use the proceeds plus available cash to redeem all $1.5 billion of its 2026 notes outstanding.

Issuer:	Hilton Domestic Operating Co. Inc.
Amount:	$1.5 billion
Maturity:	Feb. 15, 2032
Securities:	Senior notes
Left bookrunner:	BofA Securities Inc.
Joint bookrunners:	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
Co-managers:	Capital One Securities Inc., Credit Agricole CIB, HSBC Securities (USA) Inc., MUFG, NatWest Markets Securities Inc., PNC Capital Markets LLC, Standard Chartered Bank, Truist Securities Inc. and U.S. Bancorp Investments Inc.
Coupon:	3 5/8%
Price:	Par
Yield:	3 5/8%
First call:	Aug. 15, 2026 at 101.813
Trade date:	Jan. 19
Settlement date:	Feb. 2
Ratings:	Moody's: Ba2
	S&P: BB
Distribution:	Rule 144A and Regulation S
Price talk:	3¾% area
Marketing:	Drive-by

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