Hyatt Hotels Completes Offering of Senior Notes to Refinance Debt

Hyatt Hotels Corporation (NYSE: H) has successfully completed a significant financial move with the issuance and sale of $150,000,000 in 5.250% Senior Notes due 2029 and $450,000,000 in 5.375% Senior Notes due 2031. The offering, conducted on November 20, 2024, was executed under an effective Registration Statement on Form S-3 (Registration No. 333-274272).

The net proceeds from the offering, totaling approximately $594.6 million after underwriters’ discounts and estimated offering expenses, will be primarily used by Hyatt Hotels Corporation to repay all outstanding 5.375% senior notes due in 2025. The remaining proceeds will be earmarked for general corporate purposes that the company deems necessary, along with fees and expenses related to the offering.

The issuance was executed in accordance with the company’s indenture agreements, specifically citing a Second Supplemental Indenture dated November 20, 2024. The terms of the Notes outline that the 2029 Notes will bear interest at 5.250% per annum, payable semi-annually starting December 30, 2024, and maturing on June 30, 2029. Similarly, the 2031 Notes will bear interest at 5.375% per annum, payable semi-annually starting June 15, 2025, and maturing on December 15, 2031.

Hyatt Hotels’ ability to redeem some or all of the Notes before certain dates, alongside provisions in the indenture that restrict certain financial activities, ensures a structured financial environment for the company. These terms place the Notes on par with all existing and future unsecured unsubordinated debt of Hyatt Hotels.

The execution of the underwriting agreement, featuring Wells Fargo Securities, LLC, Goldman Sachs & Co LLC, and Truist Securities, Inc., as representatives of the underwriters, adds another layer of sophistication to the offering. Furthermore, the legal opinion letter from Latham & Watkins LLP regarding the validity of the Notes further enhances the transparency and compliance of the process.

Hyatt Hotels’ strategic move to refinance debt through this offering speaks to the company’s commitment to optimizing its financial structure for future growth and stability. Such initiatives ensure a robust financial foundation for Hyatt Hotels Corporation as it navigates the ever-evolving hospitality landscape.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Hyatt Hotels’s 8K filing here.

About Hyatt Hotels

Hyatt Hotels Corporation operates as a hospitality company in the United States and internationally. It operates through Owned and Leased Hotels, Americas Management and Franchising, ASPAC Management and Franchising, EAME Management and Franchising, and Apple Leisure Group segments. The company manages, franchises, licenses, owns, and leases portfolio of properties, consisting of full-service hotels and resorts, select service hotels, and other properties, including timeshare, fractional, residential, vacation, and condominium units.