Hilton Completes $400 Million Bond Sale

11th May 2001

Hilton Hotels Corp. (NYSE:HLT) today completed the sale of $400 million seven-year senior unsecured notes.

The notes—rated Baa3, BBB- and BBB- by Moody`s, S&P and Fitch, respectively—carry a coupon of 7.625 percent and have a maturity date of May 15, 2008. Proceeds from the sale will be used to repay indebtedness under the company`s revolving credit facility expiring October 2003.

“We are very pleased with the smooth execution of this transaction,” said Mariel C. Albrecht, senior vice president and treasurer of Hilton Hotels. “It received tremendous support in the marketplace, as evidenced by an oversubscription of more than 2-to-1.

“This transaction brings our percentage of floating rate debt to 38 percent, down from 46 percent at the end of the first quarter 2001. We will continue to access the capital markets on an opportunistic basis, working toward our stated goal of 65/35 percent fixed-to- floating rate debt.”

Joint book-running managers on the transaction were Credit Suisse First Boston and Morgan Stanley Dean Witter. Co-lead managers were Banc of America Securities LLC and UBS Warburg. Co-managers were First Union Securities Inc.; Scotia Capital; Wachovia Securities Inc.; Banc One Capital Markets Inc.; BNY Capital Markets Inc.; Credit Lyonnais Securities; SG Cowen Securities Corp.; Wells Fargo Brokerage Services LLC; Deutsche Banc Alex. Brown; Goldman, Sachs & Co.; and Utendahl Capital Partners L.P.




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