Hyatt Hotels Corp., the lodging chain controlled by the Pritzker family, issued bonds to help pay down debt in its first sale since 2011.
The company sold $350 million of 3.375 senior notes due July 2023 to yield 165 basis points more than similar-maturity Treasuries, according to data compiled by Bloomberg. Proceeds will be used to redeem $250 million of 5.75 percent bonds due August 2015 and to fund a tender offer for $250 million of 6.875 percent securities maturing August 2019, Chicago-based Hyatt said in a regulatory filing. Any remaining proceeds will be used for general corporate purposes.
Hyatt last offered debt in August 2011, selling $250 million of 5.375 percent, 10-year notes with a relative yield of 300 basis points, according to data compiled by Bloomberg. The bonds traded at 113 cents on the dollar on April 19 to yield 3.55 percent, or 180 basis points more than Treasuries, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.
Goldman Sachs Group Inc., JPMorgan Chase & Co. and SunTrust Banks Inc. managed the new offering, according to the filing. The bonds are rated Baa2 by Moody’s Investors Service, the credit grader said in a statement today.