Park Hotels driving by with $650 million eight-year secured notes; initial talk 5%-5¼%

By Paul A. Harris

Portland, Ore., May 11 – Park Hotels & Resorts Inc. plans to price a $650 million offering of eight-year senior secured notes in a Tuesday drive-by, according to market sources.

Initial guidance has the notes coming to yield 5% to 5¼%, a trader said.

J.P. Morgan Securities LLC is the lead.

The notes come with three years of call protection.

The Tysons, Va.-based real estate investment trust plans to issue via its subsidiaries Park Intermediate Holdings LLC, the operating company, as well as PK Domestic Property LLC and PK Finance Co-Issuer Inc.

Proceeds will be used to pay down Park Hotels & Resorts' revolver, and the term loan it entered into in 2019, which matures in August 2024.

Park Hotels & Resorts, which was spun off from Hilton Worldwide in 2017, focuses on hotel properties.

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