Davis Polk advised Deutsche Bank Securities Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, J.P. Morgan Securities LLC, Morgan Stanley Senior Funding, Inc. and Goldman Sachs Lending Partners LLC, as joint lead arrangers and joint bookrunners, and Wells Fargo Securities, LLC, as joint bookrunner, in connection with a new $7.6 billion senior secured term loan and $1 billion senior secured revolving credit facility for Hilton Worldwide Finance, LLC, a subsidiary of Hilton Worldwide Holdings, Inc. (Hilton), with The Blackstone Group L.P. as sponsor. The term loan is the largest single tranche term loan since before the financial crisis.
Davis Polk also advised Merrill Lynch, Pierce, Fenner & Smith Incorporated, Deutsche Bank Securities Inc., Goldman, Sachs & Co. Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Wells Fargo Securities, LLC, as joint book-running managers, in connection with the concurrent offering by Hilton Worldwide Finance LLC and Hilton Worldwide Finance Corp. of their for $1.5 billion aggregate principal amount of 5.625% senior notes due 2021.
The proceeds of the new credit facilities and the notes will be used, together with the proceeds from certain other financing transactions and available cash, to refinance substantially all outstanding debt of Hilton and pay related transaction expenses.
Hilton, headquartered in McLean, Virginia, is one of the largest and fastest growing global hospitality companies, with its flagship Hilton Hotels & Resorts brand ranked as the most recognized hotel brand in the world. Hilton manages, franchises owns and leases hotels, resorts and timeshare properties around the world.
The Davis Polk leveraged finance team included partners Michael Kaplan, Jason Kyrwood and John B. Meade, associates Marcel Fausten, Stevan R.B. Nicholas, Shane Tintle, Ferrell Maguire and Jansen A.S. Thurmer, and law clerk Novika Ishar. Partner Kathleen L. Ferrell and associate Nicole P. Field provided tax advice. The real estate team included partner Thomas Patrick Dore Jr., former associate Steve Sorkin and law clerk Loren A. Crary. Counsel Erin K. Cho and associate Gillian E. Moldowan provided executive compensation advice. Associates Bruce Rose-Innes and Nicholas D. DiChiara provided intellectual property advice. Counsel Loyti Cheng and associate Amy E. Turner provided environmental advice. Counsel Jeanine P. McGuinness provided financial institution advice. Members of the Davis Polk team are based in the New York and Washington DC offices.
