MCLEAN, Va. - Hilton Worldwide Holdings Inc. (NYSE: NYSE:HLT), a global hospitality company, announced the final terms for a significant debt offering through its indirect subsidiary, Hilton Domestic Operating Company Inc. The offering consists of $550 million of 5.875% Senior Notes due in 2029 and $450 million of 6.125% Senior Notes due in 2032, collectively referred to as the Notes.
The company expects the transaction to close on March 26, 2024, subject to customary closing conditions. The proceeds from the offering are intended for general corporate purposes. These include repaying $200 million of the company's existing debt under its senior secured revolving credit facility, as well as potential investments and acquisitions.
These debt securities have not been registered under the Securities Act of 1933 or any state securities laws. Consequently, they may not be offered or sold within the United States except through an exemption or in a transaction not subject to registration requirements.
The Notes were marketed to qualified institutional buyers and certain non-U.S. persons in offshore transactions, in compliance with specific regulations under the Securities Act.
The press release issued by Hilton is in accordance with Rule 135c under the Securities Act and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The announcement also includes forward-looking statements regarding Hilton's business performance and financial outcomes.
Still, these statements are subject to various risks and uncertainties, including those inherent to the hospitality industry and other external factors beyond Hilton's control.
Hilton's actual results could materially differ from those projected in the forward-looking statements due to several risk factors, including but not limited to, changes in the macroeconomic environment, the competitive nature of the hospitality industry, and the company's level of indebtedness.
These factors are detailed in the "Risk Factors" section of Hilton's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in subsequent filings with the Securities and Exchange Commission, which are publicly available.
The information in this article is based on a press release statement from Hilton Worldwide Holdings Inc.
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