Wyndham sets roadshow for $500 million eight-year notes backing LaQuinta acquisition

By Paul A. Harris

Portland, Ore., March 23 – Wyndham Hotels & Resorts, Inc. plans to start a roadshow on Monday in New York for a $500 million offering of eight-year senior notes (Ba2/BB-), according to a market source.

A New York group lunch and investor conference call are scheduled for Monday.

The roadshow travels to Boston on Tuesday and to the West Coast of the United States on Wednesday, and the Rule 144A and Regulation S for life deal is set to price thereafter.

Joint bookrunner Barclays will bill and deliver. Deutsche Bank Securities Inc., BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. and Wells Fargo Securities LLC are also joint bookrunners.

MUFG, Scotia Capital, SunTrust Robinson Humphrey Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The deal comes with an investment-grade covenant package.

The notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.

Proceeds will be used to help fund the acquisition of La Quinta Holdings Inc.’s hotel franchise and hotel management businesses for $1.95 billion in cash and for general corporate purposes.

The prospective issuer is a Parsippany, N.J.-based hotel franchisor.

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