Hilton Worldwide Plans $3.25 Billion of Bonds in Three Parts

Hilton Worldwide Holdings Inc. plans to issue $3.25 billion of bonds in a three-part offering, according to a statement from Standard & Poor’s.

The world’s largest hotel chain will issue $1.25 billion in eight-year senior secured notes and $2 billion of senior unsecured notes due in 2021 and 2023, according to the statement.

Proceeds from the sale will be used to repay existing debt, which exceeded $15 billion as of June 30, according to a Sept. 12 regulatory filing. S&P assigned Hilton a BB- corporate credit rating with a stable outlook, according to the statement.

Hilton filed to raise $1.25 billion in an initial public offering, proceeds of which would pay down borrowings, according to the regulatory document. McLean, Virginia-based Hilton was acquired by New York-based private equity firm Blackstone Group LP (BX) in 2007 for $26 billion, including debt.

The hotel operator is also seeking $5.85 billion in loans and $3.5 billion in commercial mortgage-backed securities to refinance debt, according to the S&P statement.

To contact the reporter on this story: Callie Bost in New York at cbost2@bloomberg.net

To contact the editor responsible for this story: Alan Goldstein at agoldstein5@bloomberg.net

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