Wyndham Hotels & Resorts Announces Upsizing And Pricing Of Senior Notes Offering
Wyndham Hotels & Resorts Announces Upsizing And Pricing Of Senior Notes Offering |
[10-August-2020] |
PARSIPPANY, N.J., Aug. 10, 2020 /PRNewswire/ -- Wyndham Hotels & Resorts, Inc. (NYSE: WH) announced today the pricing of its offering of $500 million aggregate principal amount of 4.375% Senior Notes due 2028 (the "Notes"), which represents a $150 million increase from the previously announced size of the offering. The offering is expected to close on August 13, 2020, subject to customary closing and market conditions, and the Company intends to use the net proceeds of the offering, together with cash on hand, to repay $500 million of the borrowings outstanding under its revolving credit facility and to pay related fees and expenses. The Notes will be guaranteed by certain of the Company's domestic restricted subsidiaries that guarantee its outstanding credit facilities and its existing notes. In addition, the Company entered into a second amendment to its credit agreement related to its revolving credit facility to remove the permanent 0.50% LIBOR floor at the end of the relief period, which was imposed as part of the first amendment. At the end of the relief period, the LIBOR floor will now be reset to 0.00%, consistent with the original credit agreement. The Notes and the related guarantees have not been registered under the Securities Act of 1933, as amended (the "Securities Act"), any state securities laws or the securities laws of any other jurisdiction. The Notes and the related guarantees may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes and the related guarantees will be offered, by the initial purchasers, only to persons reasonably believed to be "qualified institutional buyers" in reliance on the exemption from registration provided by Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in accordance with Regulation S under the Securities Act. This press release 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 the related guarantees or any other securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. PJT Partners served as financial advisor to the Company on the transactions. About Wyndham Hotels & Resorts Forward-Looking Statements Factors that could cause actual results to differ materially from those in the forward-looking statements include, without limitation, general economic conditions; the continuation or worsening of the effects from the COVID-19 pandemic, its scope and duration and impact on the Company's business operations, financial results, cash flows and liquidity, as well as the impact on the Company's franchisees and property owners, guests and team members, the hospitality industry and overall demand for travel; the success of the Company's mitigation efforts in response to the COVID-19 pandemic; the Company's performance in any recovery from the COVID-19 pandemic; the performance of the financial and credit markets; the economic environment for the hospitality industry; operating risks associated with the hotel franchising and management businesses; the Company's relationships with franchisees and property owners; the impact of war, terrorist activity or political strife; concerns with or threats of pandemics, contagious diseases or health epidemics, including the effects of the COVID-19 pandemic and any resurgence of the virus and actions governments, businesses and individuals take in response to the pandemic, including stay-in-place directives and other travel restrictions; risks related to the Company's relationship with CorePoint Lodging; the Company's ability to satisfy obligations and agreements under its outstanding indebtedness, including the payment of principal and interest and compliance with covenants thereunder; risks related to the Company's ability to obtain financing, including access to liquidity and capital as a result of COVID-19; the restrictions on share repurchases and the Company's ability or plans to pay dividends and to repurchase shares including the timing and amount of any future share repurchase and dividends, as well as the risks described in the Company's most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (the "SEC") and any subsequent reports filed with the SEC. The Company undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, subsequent events or otherwise.
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Company Codes: NYSE:WH |
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