Summary
Hilton Worldwide Holdings Inc. (HLT) filed an 8-K on October 2, 2017, reporting on a significant secondary offering and a related share repurchase. Entities affiliated with The Blackstone Group L.P. were offering 14,610,000 shares of common stock, aiming to raise approximately $1.0 billion. This offering is expected to close on October 4, 2017. Concurrently, Hilton announced its intention to repurchase 986,175 shares of its common stock directly from these selling stockholders at the same price as the offering. This repurchase, funded by cash on hand, is part of the company's existing share repurchase program and was approved by the audit committee. Additionally, the report notes the resignation of director Jon M. Huntsman, Jr. due to his appointment as U.S. ambassador to Russia.
Key Highlights
- 1Blackstone Group is selling approximately $1.0 billion worth of Hilton shares via a secondary offering.
- 2Hilton plans to repurchase 986,175 of its own shares, representing 6.75% of the shares offered, directly from the selling stockholders.
- 3The share repurchase will be executed at the same price as the secondary offering and funded by existing cash.
- 4The share repurchase is conditioned on the closing of the secondary offering, but the offering is not conditioned on the repurchase.
- 5The repurchase is consistent with Hilton's existing share repurchase program.
- 6Director Jon M. Huntsman, Jr. resigned from the Board of Directors on September 28, 2017, due to his appointment as U.S. ambassador to Russia.