Park Hotels & Resorts Inc. Announces Upsizing and Pricing of Senior Notes Offering

TYSONS, Va., May 02, 2024 (GLOBE NEWSWIRE) -- Park Hotels & Resorts Inc. (“Park” or the “Company”) (NYSE: PK) announced today that certain of its subsidiaries, Park Intermediate Holdings LLC (the “Operating Company”), PK Domestic Property LLC (“PK Domestic LLC”) and PK Finance Co-Issuer Inc. (together with the Operating Company and PK Domestic LLC, the “Issuers”), priced an offering of $550 million aggregate principal amount of 7.000% senior notes due 2030 (the “Notes”) at a price equal to 100% of face value. The Notes will pay interest semi-annually in arrears, at a rate of 7.000% per year, and will mature on February 1, 2030. The Notes will be guaranteed by Park, PK Domestic REIT Inc. and certain subsidiaries of the Operating Company that guarantee the Company’s senior credit facilities and existing senior notes. 

The offering has been upsized from the previously announced amount of $450 million. The Issuers intend to use the net proceeds of the offering, together with proceeds of a new unsecured term loan in an aggregate principal amount of at least $200 million that is contemplated to be incurred pursuant to an amendment to the Company’s existing credit agreement (the “Term Loan”) to (i) purchase all $650 million of the Issuers’ 7.500% Senior Notes due 2025 (the “2025 Notes”) that are validly tendered and accepted for purchase pursuant to the Issuers’ previously announced concurrent cash tender offer for any and all 2025 Notes (the “Tender Offer”) and to redeem any 2025 Notes not tendered in the Tender Offer and (ii) pay related fees and expenses incurred in connection with the offering, the Tender Offer and the redemption, with any remaining net proceeds used for general corporate purposes. If the Tender Offer is not consummated, the Issuers intend to use the net proceeds from the offering, together with Term Loan proceeds, to (i) redeem in full the 2025 Notes and (ii) pay related fees and expenses incurred in connection with the offering and the redemption, with any remaining net proceeds used for general corporate purposes. The Issuers anticipate that consummation of the offering will occur on May 16, 2024, subject to customary closing conditions.