Upsizing and Pricing of Senior Secured Notes Offering Of PK

Park Hotels & Resorts Inc. (NYSE: PK at https://www.webull.com/quote/nyse-pk ) announced on May 19, 2020, that certain of its subsidiaries, Park Intermediate Holdings LLC, PK Domestic Property LLC, and PK Finance Co-Issuer Inc., priced an offering of $550 million aggregate principal amount of 7.500% senior secured notes due 2025 at a price equal to 100% of face value. The Notes will pay interest semi-annually in arrears i.e, in parts, at a rate of 7.500% per year, and will mature on June 1, 2025.

The Notes are said to be guaranteed by Park and certain subsidiaries of the Operating Company that guarantee on and definitely prior to the issue date, indebtedness under the Company’s senior credit facilities. The Notes will be secured but always subjected to the permitted lines and boundaries, by a first priority security interest in all of the capital stock of certain wholly-owned subsidiaries of certain of the people who guarantee and PK Domestic LLC, which collateral easily and also secures the obligations under the Company’s senior credit facilities on a very first priority basis.

The offering has been upsized from the previously announced amount of $500 million. The Company intends to use $150 million of the net proceeds of the offering to repay amounts outstanding under the Company’s fully drawn $1.0 billion revolving credit facility, the next $350 million of the net proceeds for general corporate purposes and the remaining net proceeds to repay equal amounts under the Company’s revolving credit facility and its 2016 term loan. The Issuers anticipate that consummation of the offering will occur on May 29, 2020, subject to customary closing conditions.

These Notes are those which cannot be offered or sold in the United States except pursuant or in the form of a transaction not subject to, the requirements of the registrations with Securities Act and applicable state securities laws. The Notes are supposed to be offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from the registration provided by Rule 144A under the Securities Act as applicable. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act, and it is neither an offer to sell nor a solicitation of an offer to buy any securities and shall not constitute an offer to sell or a solicitation of an offer to buy, or a sale of, the Notes or any other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. Now you can buy stocks by online trading. Disclaimer: The analysis information is for reference only and does not constitute an investment recommendation.

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