Hyatt Announces Pricing of Public Offering of Senior Notes
Hyatt Hotels (NYSE: H) has announced the pricing of its public offering of senior notes, consisting of two tranches: $500 million in notes due 2028 with a 5.050% fixed annual rate, and $500 million in notes due 2032 with a 5.750% fixed annual rate. The offering is expected to close on March 26, 2025.
The proceeds will partially fund the $2.6 billion Playa Hotels & Resorts acquisition. Hyatt plans to finance the entire acquisition through new debt, combining these notes' proceeds with a senior unsecured delayed draw term loan facility. The offering's completion isn't contingent on the Playa acquisition, and vice versa.
BofA Securities, J.P. Morgan, and Wells Fargo Securities are serving as joint book-running managers for the offering, which is being made under a shelf registration statement filed with the SEC on August 30, 2023.
Hyatt Hotels (NYSE: H) ha annunciato il prezzo della sua offerta pubblica di note senior, composta da due tranche: 500 milioni di dollari in note scadenti nel 2028 con un tasso fisso annuo del 5,050% e 500 milioni di dollari in note scadenti nel 2032 con un tasso fisso annuo del 5,750%. Si prevede che l'offerta si chiuda il 26 marzo 2025.
I proventi finanzieranno parzialmente l'
BofA Securities, J.P. Morgan e Wells Fargo Securities stanno fungendo da gestori congiunti dell'offerta, che viene effettuata ai sensi di un documento di registrazione a scaffale depositato presso la SEC il 30 agosto 2023.
Hyatt Hotels (NYSE: H) ha anunciado el precio de su oferta pública de notas senior, que consiste en dos tramos: 500 millones de dólares en notas con vencimiento en 2028 con una tasa fija anual del 5.050% y 500 millones de dólares en notas con vencimiento en 2032 con una tasa fija anual del 5.750%. Se espera que la oferta se cierre el 26 de marzo de 2025.
Los ingresos financiarán parcialmente la adquisición de Playa Hotels & Resorts por 2.6 mil millones de dólares. Hyatt planea financiar toda la adquisición a través de nueva deuda, combinando los ingresos de estas notas con un préstamo a término senior no garantizado con retiro diferido. La finalización de la oferta no depende de la adquisición de Playa, y viceversa.
BofA Securities, J.P. Morgan y Wells Fargo Securities están actuando como gerentes conjuntos de la oferta, que se realiza bajo una declaración de registro de estante presentada ante la SEC el 30 de agosto de 2023.
하얏트 호텔 (NYSE: H)는 2028년에 만기가 도래하는 5억 달러의 노트와 2032년에 만기가 도래하는 5억 달러의 노트로 구성된 선순위 노트의 공개 제공 가격을 발표했습니다. 각각의 고정 연이율은 5.050%와 5.750%입니다. 이 제공은 2025년 3월 26일에 마감될 것으로 예상됩니다.
수익금은 26억 달러 규모의 플라야 호텔 & 리조트 인수의 일부 자금을 조달하는 데 사용될 것입니다. 하얏트는 이러한 노트의 수익과 함께 선순위 비담보 지연 인출 조건부 대출을 조합하여 전체 인수를 새로운 부채로 재원할 계획입니다. 이 제공의 완료는 플라야 인수와는 무관합니다.
BofA 증권, J.P.모건, 웰스파고 증권이 이 제공의 공동 북런닝 매니저로서 역할을 하고 있으며, 이는 2023년 8월 30일 SEC에 제출된 선반 등록 성명서에 따라 이루어집니다.
Hyatt Hotels (NYSE: H) a annoncé le prix de son offre publique de billets senior, composée de deux tranches : 500 millions de dollars de billets arrivant à échéance en 2028 avec un taux d'intérêt fixe de 5,050 % et 500 millions de dollars de billets arrivant à échéance en 2032 avec un taux d'intérêt fixe de 5,750 %. La clôture de l'offre est prévue pour le 26 mars 2025.
Les recettes financeront partiellement l'acquisition de Playa Hotels & Resorts pour 2,6 milliards de dollars. Hyatt prévoit de financer l'intégralité de l'acquisition par le biais d'une nouvelle dette, combinant les recettes de ces billets avec un prêt à terme senior non garanti à tirage différé. L'achèvement de l'offre n'est pas conditionné à l'acquisition de Playa, et vice versa.
BofA Securities, J.P. Morgan et Wells Fargo Securities agissent en tant que co-responsables de l'offre, qui est réalisée dans le cadre d'une déclaration d'enregistrement de type shelf déposée auprès de la SEC le 30 août 2023.
Hyatt Hotels (NYSE: H) hat den Preis für sein öffentliches Angebot von Senior Notes bekannt gegeben, das aus zwei Tranchen besteht: 500 Millionen Dollar in Notes mit Fälligkeit 2028 zu einem festen Jahreszins von 5,050% und 500 Millionen Dollar in Notes mit Fälligkeit 2032 zu einem festen Jahreszins von 5,750%. Es wird erwartet, dass das Angebot am 26. März 2025 abgeschlossen wird.
Die Erlöse werden teilweise die 2,6 Milliarden Dollar Übernahme von Playa Hotels & Resorts finanzieren. Hyatt plant, die gesamte Übernahme durch neue Schulden zu finanzieren, indem die Erlöse dieser Notes mit einem unbesicherten Senior-Darlehen mit verzögertem Abruf kombiniert werden. Der Abschluss des Angebots ist nicht von der Playa-Übernahme abhängig und umgekehrt.
BofA Securities, J.P. Morgan und Wells Fargo Securities fungieren als gemeinsame Buchführer für das Angebot, das unter einem am 30. August 2023 bei der SEC eingereichten Shelf-Registrierungsstatement erfolgt.
- Successful pricing of $1 billion senior notes offering
- Strategic expansion through $2.6 billion Playa Hotels acquisition
- Secured debt financing structure for the entire acquisition amount
- Significant increase in debt load with $1 billion new senior notes
- Additional leverage from upcoming term loan facility
- Higher interest expenses from 5.050% and 5.750% rates on new debt
Insights
Hyatt's $1 billion senior notes offering represents a significant debt-raising action to partially finance its $2.6 billion acquisition of Playa Hotels & Resorts. The dual-tranche structure - $500 million at
This debt issuance is particularly notable as Hyatt indicated it plans to fund the entire Playa acquisition with new debt, including these notes and a senior unsecured delayed draw term loan. The interest rates secured (
The Playa acquisition signals Hyatt's strategic push to expand its all-inclusive resort portfolio, likely targeting enhanced growth in leisure travel segments. While this transaction will significantly increase Hyatt's leverage in the near term, the company is making a calculated bet that the cash flow from Playa's assets will provide adequate debt service coverage while supporting its asset-light growth strategy. Investors should monitor how effectively Hyatt integrates these properties and whether the anticipated revenue synergies materialize to justify this substantial debt-funded expansion.
Hyatt's
The offering's structure indicates careful financial engineering. The split between medium-term (2028) and longer-term (2032) notes balances flexibility with stability, while securing fixed rates protects against future interest rate volatility. The successful pricing amid current market conditions demonstrates investor confidence in Hyatt's expansion strategy and ability to manage the increased leverage.
From a strategic perspective, this acquisition accelerates Hyatt's pivot toward leisure travel assets, which have shown stronger post-pandemic recovery than business travel. All-inclusive resorts typically generate more predictable revenue streams through package bookings, potentially offsetting volatility in Hyatt's urban portfolio. The key strategic question remains whether the
The offering is expected to close on March 26, 2025, subject to customary closing conditions.
The Company intends to use the net proceeds of the offering to fund a portion of the purchase price for its pending acquisition of Playa Hotels & Resorts N.V. (“Playa,” and the pending acquisition of Playa, the “Playa Hotels Acquisition”), including payment of any fees and expenses relating to the Playa Hotels Acquisition and fees and expenses related to this offering.
Hyatt previously announced that it intends to fund
BofA Securities, J.P. Morgan and Wells Fargo Securities are acting as representatives of the underwriters and joint book-running managers for the offering.
The offering is being made pursuant to a shelf registration statement on Form S-3, including a base prospectus, that was filed by the Company with the Securities and Exchange Commission (the “SEC”) and became automatically effective upon filing on August 30, 2023. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering was filed with the SEC and is available on the SEC’s website located at www.sec.gov. Copies of the final prospectus supplement and the accompanying prospectus relating to the securities being offered may also be obtained by contacting: BofA Securities, Inc. at +1 800-294-1322, J.P. Morgan Securities LLC collect at +1 212-834-4533 and Wells Fargo Securities LLC at +1 800-645-3751.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
About Hyatt Hotels Corporation
Hyatt Hotels Corporation (NYSE: H), headquartered in
Important Information About the Tender Offer
This press release is for informational purposes only and is neither an offer to purchase nor a solicitation of an offer to sell ordinary shares of Playa or any other securities, nor is it a substitute for the tender offer materials that HI Holdings Playa B.V. (the “Buyer”) filed with the SEC upon the commencement of the tender offer. The Company has filed with the SEC a tender offer statement on Schedule TO (the “Tender Offer Statement”) and Playa has filed with the SEC a solicitation/recommendation statement on Schedule 14D-9 (the “Solicitation/Recommendation Statement”) with respect to the tender offer. THE TENDER OFFER STATEMENT (INCLUDING AN OFFER TO PURCHASE, A RELATED LETTER OF TRANSMITTAL AND CERTAIN OTHER TENDER OFFER DOCUMENTS) AND THE SOLICITATION/RECOMMENDATION STATEMENT ON SCHEDULE 14D-9 CONTAIN IMPORTANT INFORMATION. PLAYA’S SHAREHOLDERS ARE URGED TO READ THESE DOCUMENTS CAREFULLY (AS EACH MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME) BECAUSE THEY CONTAIN IMPORTANT INFORMATION THAT HOLDERS OF PLAYA’S SECURITIES SHOULD CONSIDER BEFORE MAKING ANY DECISION WITH RESPECT TO THE TENDER OFFER. The Tender Offer Statement (including the Offer to Purchase, the related Letter of Transmittal and certain other tender offer documents), as well as the Solicitation/Recommendation Statement, are available to all holders of Playa’s ordinary shares at no expense to them. The Tender Offer Statement and the Solicitation/Recommendation Statement are available for free at the SEC’s website at www.sec.gov. Copies of the documents filed by the Company with the SEC will also be available free of charge on Hyatt’s Investor Relations site at investors.hyatt.com. In addition, Playa shareholders may obtain free copies of the tender offer materials by contacting the information agent for the tender offer by telephone at (866) 828-4304 (toll free) or (210) 664-3693 (non-toll free), or by email at HyattOffer@georgeson.com.
Forward-Looking Statements
This press release contains certain “forward-looking statements,” which statements are not historical facts, relating to Hyatt, Playa and the proposed acquisition. These statements include, but are not limited to: statements about the proposed acquisition and the expected timeline for completing the acquisition; approvals of the acquisition; ability to consummate and finance the acquisition; method of financing the acquisition; integration of the acquisition; future operations or benefits; future business and financial performance; and outcomes of the proposed acquisition involve known and unknown risks that are difficult to predict. Words such as “anticipate,” “believe,” “estimate,” “expect,” “seek,” “likely,” “forecast,” “estimate,” “continue,” “intend,” “may,” “could,” “plan,” “project,” “predict,” “should,” “would,” “will” and variations of these terms and similar expressions, or the negative of these terms or similar expressions, are intended to identify such forward-looking statements. Such forward-looking statements are necessarily based upon estimates and assumptions available to us as of the date the statements are made, which are inherently uncertain. Our actual results, performance or achievements may differ materially from those expressed or implied by these forward-looking statements due to various known and unknown risks and uncertainties. Factors that may cause actual results, performance or achievements to differ materially from current expectations include, but are not limited to: the effects that the announcement or pendency of the proposed acquisition may have on us, Playa and our respective business and ability to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom we or they do business; inability to obtain required regulatory or government approvals or to obtain such approvals on satisfactory conditions; inability to obtain sufficient shareholder tender of Playa ordinary shares, shareholder approval or to satisfy other closing conditions; inability to obtain financing; the occurrence of any event, change or other circumstance that could give rise to the termination of the definitive agreement; the effects that any termination of the definitive agreement may have on us or our business; failure to successfully complete the proposed acquisition; legal proceedings that may be instituted related to the proposed acquisition; significant and unexpected costs, charges or expenses related to the proposed acquisition; risks associated with potential divestitures, including of Playa real estate or business; ability or failure to successfully integrate the acquisition with existing operations; ability to realize anticipated synergies or obtain the results anticipated; general economic uncertainty in key global markets and a worsening of global economic conditions or low levels of economic growth; the financial condition of, and our and Playa’s relationships with, third-party owners, franchisees, and hospitality venture partners; the possible inability of third-party owners, franchisees, or development partners to access the capital necessary to fund current operations or implement our plans for growth; our ability to successfully execute our strategy to expand our management and hotels services and franchising business while at the same time reducing Playa’s real estate asset base within targeted timeframes and at expected values; our and Playa’s ability to maintain effective internal control over financial reporting and disclosure controls and procedures; declines in the value of real estate assets; unforeseen terminations of management and hotels services or franchise agreements; risks associated with changing, or the introduction of new, brand concepts, including lack of acceptance of different or new brands or innovation; general volatility of the capital markets and our ability to access such markets; changes in the competitive environment in our industry, industry consolidation, and the markets where we and Playa operate; violations of regulations or laws related to our or Playa’s franchising businesses, licensing businesses or international operations; and other risks discussed in our filings with the SEC, including our most recently filed annual report on Form 10-K and subsequent quarterly reports filed on Form 10-Q, which filings are incorporated herein by reference and available from the SEC’s website at www.sec.gov, and in other documents that we may file with or furnish to the SEC. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the cautionary statements set forth above. We caution you not to place undue reliance on any forward-looking statements, which are made only as of the date of this press release. We do not undertake or assume any obligation to update publicly any of these forward-looking statements to reflect actual results, new information or future events, changes in assumptions or changes in other factors affecting forward-looking statements or otherwise, except to the extent required by applicable law. If we update one or more forward-looking statements, no inference should be drawn that we will make additional updates with respect to those or other forward-looking statements.
HHC-FIN
View source version on businesswire.com: https://www.businesswire.com/news/home/20250317957649/en/
Hyatt Media Contact:
Franziska Weber
franziska.weber@hyatt.com
Hyatt Investor Contacts:
Adam Rohman
adam.rohman@hyatt.com
Ryan Nuckols
ryan.nuckols@hyatt.com
Source: Hyatt Hotels Corporation
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