Published on 9/15/2020 in the Prospect News High Yield Daily.
New Issue: Park Hotels sells upsized $725 million 5 7/8% eight-year notes at par
By Paul A. Harris
Portland, Ore., Sept. 15 – Park Hotels & Resorts Inc. priced an upsized $725 million issue of eight-year senior secured notes (B1/BB-) at par to yield 5 7/8% on Tuesday, according to market sources.
The yield printed at the tight end of yield talk in the 6% area. Initial guidance was in the low-to-mid 6% area.
BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Barclays, Jefferies LLC and Truist Securities Inc. were the joint bookrunners.
The notes were sold via issuer Park Intermediate Holdings LLC.
The Tysons, Va.-based real estate investment trust, which is focused on hotels and resorts, plans to use the proceeds to pay off its 2016 term loan, with any remaining proceeds to repay amounts outstanding under its revolver.
| Issuer: | Park Intermediate Holdings LLC
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| Amount: | $725 million, increased from $650 million
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| Maturity: | Oct. 1, 2028
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| Securities: | Senior secured notes
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| Bookrunners: | BofA Securities Inc., J.P. Morgan Securities LLC, Wells Fargo Securities LLC, Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, Goldman Sachs & Co. LLC, Barclays, Jefferies LLC and Truist Securities Inc.
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| Co-managers: | BBVA Securities Inc., Scotia Capital (USA) Inc., SMBC Nikko Securities America Inc., Credit Agricole CIB, Raymond James & Associates and Regions Securities LLC
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| Coupon: | 5 7/8%
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| Price: | Par
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| Yield: | 5 7/8%
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| Spread: | 535 bps
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| Call protection: | Three years
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| Trade date: | Sept. 15
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| Settlement date: | Sept. 18
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| Ratings: | Moody's: B1
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| S&P: BB-
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6% area
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| Marketing: | Roadshow
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