Hilton Worldwide Holdings Inc. has now formally priced its initial public offering of 117,640,624 shares of common stock at $20.00 per share. This pricing is rather fair considering that the price range was last indicated at $18 to $21 before tightening up. Hilton will trade under the ticker “HLT” on the New York Stock Exchange. We would note that this deal was slightly up-sized due to demand.
Hilton Worldwide itself is offering 64,102,564 of the shares and 53,538,060 of the shares are being sold by private equity backers.
The private equity giant The Blackstone Group LP (NYSE: BX) will own a majority stake in the company. This is also being touted as one of the most profitable deals for private equity taking a hotel chain private and then bringing it public all over again.
Hilton Worldwide intends to use the net proceeds from the offering and available cash to repay approximately $1.25 billion of term loan borrowings outstanding under its senior secured credit facilities. It appears that the deal is coming at close to 13-times expected EBITDA and Blackstone appears to be close to 75% ownership after the deal, depending upon the overallotment option.
The underwriting syndicate is massive here. Joint book runners are listed as Deutsche Bank, Goldman Sachs, BofA Merrill Lynch, Morgan Stanley, J.P. Morgan and Wells Fargo Securities. Co-managers are listed as follows: Blackstone Capital Markets, Macquarie Capital, Barclays, Mitsubishi UFJ Securities, Citigroup, Credit Suisse, HSBC, RBS, Baird, Credit Agricole CIB, Nomura, Raymond James, RBC Capital Markets, UBS Investment Bank, CastleOak Securities, Drexel Hamilton, Telsey Advisory Group and Ramirez and Co. The overallotment option of up to an additional 17,646,093 shares at the initial public offering is coming from the shareholder led by Blackstone affiliates rather than the company.
The Average American Is Losing Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4% today, and inflation is much higher. Checking accounts are even worse.
Every day you don’t move to a high-yield savings account that beats inflation, you lose more and more value.
But there is good news. To win qualified customers, some accounts are paying 9-10x this national average. That’s an incredible way to keep your money safe, and get paid at the same time. Our top pick for high yield savings accounts includes other one time cash bonuses, and is FDIC insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes and your money could be working for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
