Wyndham to Issue $250M to Repay Debt
February 22, 2010
Wyndham Worldwide plans to sell $250 million in new junk bonds to repay debt, the Parsippany, N.J.-based hotel operator said today in documents filed with the Securities and Exchange Commission. The notes could price as early as today, according to a source familiar with the deal.
The Parsippany, N.J.-based company will use the proceeds to repay existing debt, including its revolving credit facility and some of its $300 million term loan. Bank of America Merrill Lynch, Credit Suisse, Deutsche Bank and JPMorgan are the joint bookrunners for the offering.
Moody’s Investors Service assigned a Ba1 rating to the proposed notes. Standard & Poor’s rated the notes BBB-.
In addition to the outstanding $300 million term loan, Wyndham has $250 million in outstanding 9.875% senior notes due 2014, $230 million in 3.5% convertible notes due 2012 and $800 million in 6% senior notes due 2016. A company representative was not immediately available for comment.
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