Hyatt Announces Pricing of Floating Rate Senior Notes
August 26 2020 - 10:15AM
Business Wire
Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H)
today announced the pricing of its public offering of $750,000,000
aggregate principal amount of senior notes due 2022. The notes will
bear interest at a floating rate equal to three-month LIBOR plus a
margin of 3.00%, payable quarterly, in arrears. Hyatt will have the
option to redeem all or any portion of the notes at 100% of their
principal amount at any time on or after the first anniversary of
the issue date of the notes. Hyatt intends to use the proceeds from
the offering for general corporate purposes and to pay related fees
and expenses.
The proceeds from the offering provide liquidity beyond the
nearly $3.0 billion Hyatt reported as of the end of the second
quarter of 2020, reinforcing Hyatt’s ability to continue to
effectively navigate the COVID-19 recovery period with significant
liquidity and flexibility. Hyatt’s ability to redeem the notes at
par also provides flexibility to manage leverage over time while
maintaining an investment grade credit rating. Hyatt’s current cash
burn estimate remains consistent with previously announced
estimates, even after the inclusion of incremental interest expense
associated with the notes.
The offering is being made pursuant to an automatically
effective registration statement filed with the Securities and
Exchange Commission (the “SEC”) and available at no charge on the
SEC’s website at www.sec.gov. This press release shall not
constitute a solicitation of an offer to buy, 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 the
registration or qualification under the securities laws of any such
jurisdiction.
Deutsche Bank Securities Inc., BofA Securities, Inc. and J.P.
Morgan Securities LLC are acting as joint book-running managers for
the offering. Electronic copies of the preliminary prospectus
supplement and accompanying prospectus relating to the offering may
be obtained by contacting Deutsche Bank Securities Inc. toll-free
at +1 800 503 4611.
FORWARD-LOOKING
STATEMENTS
Forward-Looking Statements in this press release, which are not
historical facts, are forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the
Exchange Act of 1934. Our actual results, performance or
achievements may differ materially from those expressed or implied
by these forward-looking statements. In some cases, you can
identify forward-looking statements by the use of words such as
“may,” “could,” “expect,” “intend,” “plan,” “seek,” “anticipate,”
“believe,” “estimate,” “predict,” “potential,” “continue,”
“likely,” “will,” “would” and variations of these terms and similar
expressions, or the negative of these terms or similar expressions.
Such forward-looking statements are necessarily based upon
estimates and assumptions that, while considered reasonable by us
and our management, are inherently uncertain. Factors that may
cause actual results to differ materially from current expectations
include, but are not limited to, the short- and longer-term effects
of the COVID-19 pandemic, including on the demand for travel,
transient and group business, and levels of consumer confidence;
actions that governments, businesses, and individuals take in
response to the COVID-19 pandemic or any future resurgence,
including limiting or banning travel; the impact of the COVID-19
pandemic, and actions taken in response to the COVID-19 pandemic or
any future resurgence, on global and regional economies, travel,
and economic activity, including the duration and magnitude of its
impact on unemployment rates and consumer discretionary spending;
the ability of third-party owners, franchisees or hospitality
venture partners to successfully navigate the impacts of the
COVID-19 pandemic; the pace of recovery following the COVID-19
pandemic or any future resurgence; general economic uncertainty in
key global markets and a worsening of global economic conditions or
low levels of economic growth; the rate and the pace of economic
recovery following economic downturns; levels of spending in
business and leisure segments as well as consumer confidence;
declines in occupancy and average daily rate; limited visibility
with respect to future bookings; loss of key personnel; domestic
and international political and geo-political conditions, including
political or civil unrest or changes in trade policy; hostilities,
or fear of hostilities, including future terrorist attacks, that
affect travel; travel-related accidents; natural or man-made
disasters such as earthquakes, tsunamis, tornadoes, hurricanes,
floods, wildfires, oil spills, nuclear incidents, and global
outbreaks of pandemics or contagious diseases or fear of such
outbreaks, such as the COVID-19 pandemic; our ability to
successfully achieve certain levels of operating profits at hotels
that have performance tests or guarantees in favor of our
third-party owners; the impact of hotel renovations and
redevelopments; risks associated with our capital allocation plans;
the seasonal and cyclical nature of the real estate and hospitality
businesses; changes in distribution arrangements, such as through
internet travel intermediaries; changes in the tastes and
preferences of our customers; relationships with colleagues and
labor unions and changes in labor laws; the financial condition of,
and our relationships with, third-party property owners,
franchisees, and hospitality venture partners; the possible
inability of third-party owners, franchisees, or development
partners to access capital necessary to fund current operations or
implement our plans for growth; risks associated with potential
acquisitions and dispositions and the introduction of new brand
concepts; the timing of acquisitions and dispositions, and our
ability to successfully integrate completed acquisitions with
existing operations; failure to successfully complete proposed
transactions (including the failure to satisfy closing conditions
or obtain required approvals); our ability to successfully execute
on our strategy to expand our management and franchising business
while at the same time reducing our real estate asset base within
targeted timeframes and at expected values; declines in the value
of our real estate assets; unforeseen terminations of our
management or franchise agreements; changes in federal, state,
local, or foreign tax law; increases in interest rates and
operating costs; foreign exchange rate fluctuations or currency
restructurings; lack of acceptance of 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, including as a result of industry consolidation, and the
markets where we operate; our ability to successfully grow the
World of Hyatt loyalty program; cyber incidents and information
technology failures; outcomes of legal or administrative
proceedings; violations of regulations or laws related to our
franchising business; and other risks discussed in the Company’s
filings with the SEC, including our annual report on Form 10-K and
quarterly reports on Form 10-Q filed on May 7, 2020 and August 4,
2020, which filings are available from 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, 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20200826005592/en/
Investor Contact: Amanda Bryant, 312.780.5539
amanda.bryant@hyatt.com
Media Contact: Franziska Weber, 312.780.6106
franziska.weber@hyatt.com
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