Hyatt Prices $400 Million in 5.950% Senior Notes Due in 2033

Hyatt Hotels Corporation set terms for $400 million of notes maturing in 2033 at a 5.950% annual rate, as it prepares to repay $600 million of debt next January.

The new notes will be senior unsecured obligations. S&P Global Ratings assigned them a BBB- issue-level rating, equal to its long-term issuer rating for Hyatt.

Hyatt plans to combine the offering’s net proceeds with excess cash to repay the full $600 million principal on its notes carrying a 5.750% rate and maturing Jan. 30, 2027. The company also plans to use funds for general corporate purposes.

The offering amount is $200 million less than the principal Hyatt plans to repay. The new notes’ stated annual rate is 0.2 percentage point above the rate on the notes coming due.

Hyatt expects the offering to close Nov. 12, subject to customary closing conditions.