Park Hotels & Resorts Enters New Credit Facility Agreement

Ticker: PK · Form: 8-K · Filed: May 16, 2024 · CIK: 1617406

Sentiment: neutral

Topics: credit-facility, debt, financing

Related Tickers: PK

TL;DR

PHK just signed a new credit deal, potentially boosting their cash flow.

AI Summary

On May 16, 2024, Park Hotels & Resorts Inc. entered into a Material Definitive Agreement related to a new credit facility. This agreement creates a direct financial obligation for the company, impacting its financial structure and potentially its borrowing capacity.

Why It Matters

This new credit facility could provide Park Hotels & Resorts with increased financial flexibility for operations, investments, or debt management.

Risk Assessment

Risk Level: medium — Entering into new financial obligations, even credit facilities, carries inherent risks related to interest rates, covenants, and repayment terms.

Key Players & Entities

FAQ

What is the nature of the Material Definitive Agreement entered into by Park Hotels & Resorts Inc. on May 16, 2024?

The agreement pertains to a new credit facility, creating a direct financial obligation for the company.

What is the exact date of the earliest event reported in this 8-K filing?

The earliest event reported is dated May 16, 2024.

What is the Central Index Key (CIK) for Park Hotels & Resorts Inc.?

The CIK for Park Hotels & Resorts Inc. is 0001617406.

What was the former company name of Park Hotels & Resorts Inc.?

The former company name was Hilton Worldwide, Inc., with a date of name change on August 20, 2014.

What is the business address of Park Hotels & Resorts Inc.?

The business address is 1775 Tyson's Blvd, 7th Floor, Tysons, VA 22102.

Filing Stats: 2,489 words · 10 min read · ~8 pages · Grade level 12.2 · Accepted 2024-05-16 16:46:27

Key Financial Figures

Filing Documents

01. Entry into a Material Definitive Agreement

Item 1.01. Entry into a Material Definitive Agreement. 7.000% Senior Notes Due 2030 On May 16, 2024, Park Intermediate Holdings LLC ("PIH"), PK Domestic Property LLC ("PK Domestic LLC") and PK Finance Co-Issuer Inc. ("Corporate Co-Issuer" and, together with PK Domestic LLC, the "Co-Issuers" and, the Co-Issuers together with PIH, the "Issuers"), direct and indirect subsidiaries of Park Hotels & Resorts Inc. (the "Company"), issued $550 million aggregate principal amount of 7.000% senior notes due 2030 (the "Notes") under an indenture (the "Indenture"), dated as of May 16, 2024, among the Issuers, the Company, the guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee (the "Trustee"). The Notes were sold in the United States only to accredited investors pursuant to an exemption from the Securities Act of 1933, as amended (the "Securities Act"), and subsequently resold to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S under the Securities Act. The Issuers intend to use the net proceeds of the offering, together with proceeds of a new $200 unsecured term loan (described below) that was incurred pursuant to an amendment to the Company's existing credit agreement 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 Term Loan (as defined below), the Tender Offer and the redemption, with any remaining net proceeds used for general corporate purposes. The Notes will mature on February 1, 2030. Interest on the Notes will accrue at a rate of 7.000% per annu

01. Other Events

Item 8.01. Other Events. On May 16, 2024, the Company issued a press release announcing the expiration and final results of the Issuers' Tender Offer for any and all of their outstanding $650 million aggregate principal amount of 2025 Notes. On May 16, 2024, the Issuers purchased $311,473,000 in principal amount of the 2025 Notes that were validly tendered and not validly withdrawn or with respect to which a properly completed and duly executed Notice of Guaranteed Delivery was delivered at or prior to 5:00 p.m., New York City time, on May 13, 2024. A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K.

01. Financial Statements and Exhibits

Item 9.01. Financial Statements and Exhibits. (d) Exhibits. Exhibit Number Description 4.1 Indenture, dated as of May 16, 2024, among Park Intermediate Holdings LLC, PK Domestic Property LLC, PK Finance Co-Issuer Inc., Park Hotels & Resorts Inc., PK Domestic REIT Inc., the subsidiary guarantors party thereto and U.S. Bank Trust Company, National Association, as trustee. 10.1 First Amendment to Amended and Restated Credit Agreement, dated as of May 16, 2024, among Park Intermediate Holdings LLC and PK Domestic Property LLC, as Borrowers, Park Hotels & Resorts Inc., the lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. 99.1 Press Release dated May 16, 2024 announcing the results of the Issuers' Tender Offer. 104 Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. Park Hotels & Resorts Inc. Date: May 16, 2024 By: /s/ Sean M. Dell'Orto Sean M. Dell'Orto Executive Vice President and Chief Financial Officer

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