Wyndham talks $500 million eight-year notes to yield 5¼%-5½%; pricing Thursday

By Paul A. Harris

Portland, Ore., March 28 – Wyndham Hotels & Resorts, Inc. talked its $500 million offering of eight-year senior notes (Ba2/BB-) to yield 5¼% to 5½%, according to a market source.

Books close at 4 p.m. ET on Wednesday, except for accounts on the West Coast of the United States with arrangements to meet with the company.

The Rule 144A and Regulation S for life deal is set to price on Thursday.

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.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.