MCLEAN, Va. - Hilton Worldwide Holdings Inc. (NYSE: NYSE:HLT), known for its global hospitality services, has announced that its indirect subsidiary, Hilton Domestic Operating Company Inc., plans to offer $1.0 billion in Senior Notes due in 2029 and 2032.
The proceeds from this debt issuance are earmarked for general corporate activities, including the repayment of $200 million of existing debt under its senior secured revolving credit facility.
This offering, which has not been registered under the Securities Act of 1933 or any state securities laws, targets qualified institutional buyers and certain non-U.S. persons in offshore transactions. The company has made it clear that this press release does not constitute an offer to sell or a solicitation of an offer to buy any securities.
While the press release includes forward-looking statements about Hilton's business performance and financial outcomes, it also acknowledges the risks inherent to the hospitality industry and the broader market. These risks range from industry-specific challenges to geopolitical events and general macroeconomic conditions.
Hilton's intention to use the net proceeds from the offering for general corporate purposes reflects its strategic financial management aimed at maintaining liquidity and supporting its growth initiatives. However, the company has cautioned that the forward-looking statements are subject to uncertainties and that actual results could differ materially due to various risk factors.
This financial move comes after Hilton's annual report for the fiscal year ended December 31, 2023, which detailed potential risks and uncertainties that could impact the company's operations and financial condition. These disclosures are part of Hilton's commitment to transparency in its financial activities and are available for review in its filings with the Securities and Exchange Commission.
The information in this article is based on a press release statement from Hilton Worldwide Holdings Inc.
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