Hilton Hotels Corp. (NYSE:HLT) today completed the sale of $300 million 10-year Senior Unsecured Notes.

The notes, rated Baa3/BBB-, carry a coupon of 8.25 percent and have a maturity date of Feb. 15, 2011. Proceeds from the sale will be used to repay indebtedness under the company`s revolving credit facility expiring Oct. 18, 2003.

“The offering was well-executed and received a strong reception in the marketplace, as demonstrated by an oversubscription of almost 2-to-1,” said Mariel C. Albrecht, senior vice president and treasurer. “This transaction enabled us to reduce our percentage of floating rate debt and extend our maturities.”

Joint Lead Managers on the transaction were Morgan Stanley Dean Witter (sole book runner) and Banc of America Securities LLC. Co-managers included First Union Securities Inc.; Scotia Capital (USA) Inc.; Wachovia Securities Inc.; Banc One Capital Markets Inc.; SG Cowen Securities Corp.; Credit Lyonnais Securities (USA) Inc.; Credit Suisse First Boston Corp.; BNY Capital Markets Inc.; and Utendahl Capital Partners L.P.

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