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.