Hilton Closes on New Credit Facility

2nd Sep 2003

Hilton Hotels Corporation (NYSE:HLT) today announced the successful completion of a new $1 billion revolving credit facility with a consortium of banks. The facility replaces Hilton`s existing $1.2 billion multi-year revolver expiring November 2004, and its $150 million 364-day revolver expiring November 2003.
The new facility expires August 2008, with pricing remaining at LIBOR+125 basis points and based on the better of Hilton`s corporate debt ratings or its ratio of debt to EBITDA. The facility will be used for general corporate purposes. The company noted that with this facility in place its next significant debt maturity will not occur until November 2007.
Banc of America Securities LLC syndicated the facility as Joint Lead Arranger and Sole Book Manager. BNY Capital Markets, Inc. served as Joint Lead Arranger and Syndication Agent, with Wachovia Bank National Association and BNP Paribas serving as Co-Documentation Agents.
“We are very pleased with how well the syndication process went. The new facility gives us greater operating flexibility and ensures access to capital for the next five years,” said Mariel A. Joliet, senior vice president and treasurer. “We believe the success of the syndication is due to the strong relationships we have forged with our bank group over the years, as well as our success in achieving substantial debt reduction and prudent balance sheet management.”



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