Park Hotels & Resorts Inc Announces Closing of $550 Million of 7.000% Senior Notes Due 2030

TYSONS, Va., May 16, 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”), completed the previously announced offering of $550 million aggregate principal amount of 7.000% senior notes due 2030 (the “Notes”). 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 are guaranteed by Park, PK Domestic REIT Inc. and certain subsidiaries of the Operating Company that guarantee the Company’s credit agreement and existing senior notes due 2025, 2028, and 2029.

The Issuers intend to use the net proceeds of the offering, together with the proceeds of a new $200 million unsecured term loan that was 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 were 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.

Thomas J. Baltimore, Jr., Chairman and Chief Executive Officer, stated, “I am extremely pleased with the execution of this offering, which, together with the Term Loan proceeds, increases our liquidity position to $1.4 billion and demonstrates our ability to access multiple debt markets to achieve our objectives to extend maturities and provide for more flexibility for our balance sheet. Upon full repayment of the 2025 Notes we will have no meaningful maturities until 2026.”

The Notes and the related guarantees were not registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities laws. The Notes and the guarantees were not 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 guarantees were offered 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 reliance on Regulation S under the Securities Act.