Citing sources who were familiar with the matter, Reuters said Hilton Worldwide Inc had named its pricing terms on its USD5.85 billion refinancing credit. The proceeds from the new credit would refinance the debt in advance of Hilton's initial public offer.
In a lender meeting held Tuesday morning in New York, the refinancing credit has bee split in two loan types. The USD850 million, B-1 loan has a term of five years and would be guided at LIB+300 basis points. This loan would be with a 1% Libor floor and an original issue discount (OID) of 99.5%. The second loan is worth USD5 billion with a seven-year term. The B-2 loan would be guided at LIB325-350. The loan would have a 1% Libor and an OID of 99%.
Both loans were expected to be covenant-life and would be carrying 101 soft-call protection for six months.
Sources also added that Hilton Worldwide Finance, LLC would be the borrower on credit. Deutsche Bank would be leading left on the loans, while JP Morgan, Bank of America Merrill Lynch, Goldman Sachs and Morgan Stanley would lead right on the loans.
A new bank loan backed by the property of Waldorf-Astoria, new senior notes, and a commercial mortgage-backed securities loan at the domestic subsidiaries of Hilton would also form part of the refinancing package.
Join the Conversation