Summary
Hilton Worldwide Holdings Inc. (HLT) filed an 8-K on August 2, 2016, to disclose material non-public information regarding its financing activities in connection with previously announced spin-offs of Park Hotels & Resorts Inc. and Hilton Grand Vacations Inc. The company is seeking to amend and extend its existing senior secured term loan facility, targeting an extension of the maturity date for a significant portion of the debt to October 2023. Additionally, Hilton plans to raise $750 million in unsecured debt. The proceeds from this new debt issuance are earmarked to repay a portion of Park Hotels & Resorts Inc.'s existing debt and cover transaction-related fees and expenses associated with the spin-offs.
Key Highlights
- 1Hilton Worldwide is amending and extending its senior secured term loan facility.
- 2The company aims to extend the maturity of $3,225 million of its term loan facility to October 2023.
- 3Hilton plans to raise $750 million in new unsecured debt.
- 4Proceeds from the unsecured debt will be used to repay a portion of Park Hotels & Resorts Inc.'s debt.
- 5The financing activities are in preparation for the previously announced spin-offs of Park Hotels & Resorts Inc. and Hilton Grand Vacations Inc.
- 6As of June 30, 2016, pro forma total debt was $6,018 million, with $4,518 million in secured debt and capital leases, and $717 million in cash and cash equivalents.
Frequently Asked Questions
This 8-K filing is primarily to disclose information to lenders about Hilton's proposed financing activities, specifically an amendment and extension of its senior secured term loan facility and a planned issuance of unsecured debt. These actions are related to the upcoming spin-offs of Park Hotels & Resorts Inc. and Hilton Grand Vacations Inc.
Hilton is targeting to amend $3,225 million of its senior secured term loan facility to extend its maturity to October 2023.
Hilton plans to raise $750 million in unsecured debt. The proceeds are intended to repay a portion of Park Hotels & Resorts Inc.'s existing debt and to cover transaction fees and expenses related to the spin-offs.
Pro forma for the spin-offs and before raising additional unsecured debt, Hilton had total debt of $6,018 million, which included $4,518 million of secured debt and capital leases. The company had total cash and cash equivalents of $717 million, including $108 million of restricted cash.