Hilton Worldwide Holdings Inc. (NYSE:HLT) Files An 8-K Entry into a Material Definitive Agreement
Item1.01 Entry Into a Material Definitive Agreement.
Credit Agreement Amendment
On November21, 2016, Hilton Worldwide Finance LLC (the Borrower),
an indirect subsidiary of Hilton Worldwide Holdings Inc. (the
Company), entered into Amendment No.2 (the Amendment) to the
Credit Agreement dated as of October25, 2013 (as amended by that
certain Amendment No.1 to the Credit Agreement dated as of
August18, 2016, the Credit Agreement). to the Amendment, the
maturity date of the commitments under the senior secured
revolving credit facility (the Revolving Credit Facility) under
the Credit Agreement has been extended to November21, 2021. Among
other things, the Amendment amends the applicable margin on loans
extended under the Revolving Credit Facility with varying step
downs and step ups from 0.50% to 1.00%, in the case of base rate
loans, and 1.50% to 2.00%, in the case of LIBOR loans, based on
achievement by the Borrower of certain first lien net leverage
ratios. The Borrower will be required to pay a commitment fee of
0.125% to the lenders under the Revolving Credit Facility in
respect of the unutilized commitments thereunder. The Borrower
will also be required to pay customary letter of credit fees.
In addition, the Amendment also amends the financial maintenance
covenant contained in the Credit Agreement. After giving effect
to the Amendment, if, on the last day of any period of four
consecutive fiscal quarters of the Borrower, the aggregate
principal amount of revolving credit loans, swing line loans
and/or letters of credit (excluding up to $50.0 million of
letters of credit and certain other letters of credit that have
been cash collateralized or backstopped) that are issued and/or
outstanding is greater than 30% of the aggregate commitments
under the Revolving Credit Facility, the Credit Agreement will
require the Borrower to maintain a consolidated first lien net
leverage ratio not to exceed 7.00 to 1.00.
All other terms of the Revolving Credit Facility and the Credit
Agreement will remain substantially the same except as otherwise
amended by the Amendment.
Certain of the participants in the Credit Agreement and their
respective affiliates have engaged in, and may in the future
engage in, investment banking and other commercial dealings in
the ordinary course of business with the Company and/or its
affiliates. They have received, or may in the future receive,
customary fees and commissions for these transactions.
The foregoing description of the Amendment does not purport to be
complete and is qualified in its entirety by reference to the
full text of such document, which is filed as Exhibit 10.1 to
this Current Report on Form 8-K and is incorporated herein by
reference.
Item9.01 Financial Statements and Exhibits
(d) Exhibits.
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Exhibit No. |
Description |
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| 10.1 |
Amendment No.2, dated as of November 21, 2016, to the Credit Agreement, dated as of October25, 2013 (as amended by that certain Amendment No.1 to the Credit Agreement dated as of August18, 2016), by and among Hilton Worldwide Holdings Inc., Hilton Worldwide Finance LLC, the other guarantors party thereto from time to time, Deutsche Bank AG New York Branch as administrative agent, collateral agent, swing line lender and L/C issuer and the other lenders party thereto from time to time. |
About Hilton Worldwide Holdings Inc. (NYSE:HLT)
Hilton Worldwide Holdings Inc. is a hospitality company. The Company is engaged in owning, leasing, managing, developing and franchising hotels, resorts and timeshare properties. It operates through three segments: management and franchise, ownership and timeshare. It has approximately 4,610 hotels, resorts and timeshare properties comprising over 758,502 rooms in approximately 100 countries and territories. Its ownership segment consists of over 150 hotels with approximately 59,460 rooms. Through management and franchise segment, it consists of over 4,420 hotels with approximately 691,890 rooms. It manages hotels, resorts and timeshare properties owned by third parties and licenses its brands to franchisees. Through the timeshare segment, it consists of over 45 properties comprising approximately 7,150 units. Its brand portfolio includes Waldorf Astoria Hotels & Resorts, Conrad Hotels & Resorts, Hilton Grand Vacations, Hilton Garden Inn and DoubleTree by Hilton, among others. Hilton Worldwide Holdings Inc. (NYSE:HLT) Recent Trading Information
Hilton Worldwide Holdings Inc. (NYSE:HLT) closed its last trading session up +0.18 at 25.03 with 6,202,042 shares trading hands.
