Summary
Hilton Worldwide Holdings Inc. (HLT) announced a significant amendment to its credit agreement through its indirect subsidiary, Hilton Domestic Operating Company Inc. This filing details Amendment No. 11, which restructures the company's term B-4 loans. Notably, the company has repaid approximately $1,000 million of term B-3 loans and replaced them with new term B-4 loans, resulting in approximately $3,119 million in outstanding term B-4 loans. The amendment also includes a reduced applicable margin on both Term SOFR rate and base rate loans, indicating a favorable repricing for the company. While beneficial for Hilton, the amendment includes a 1.00% prepayment premium for repricing within six months, a standard provision to protect lenders from immediate refinancing risks.
Key Highlights
- 1Hilton Domestic Operating Company Inc. entered into Amendment No. 11 to its Credit Agreement.
- 2Approximately $1,000 million of term B-3 loans were repaid.
- 3New term B-4 loans will total approximately $3,119 million after the transaction.
- 4The amendment reduces the applicable margin on Term SOFR rate loans to 1.75% per annum.
- 5The amendment reduces the applicable margin on base rate loans to 0.75% per annum.
- 6The credit spread adjustment for Term SOFR rate loans has been removed.
- 7A 1.00% prepayment premium applies to certain repricing transactions within six months of the amendment's effective date.