Underwriters fully exercised their option to buy 5,171,929 additional shares of Park Hotels & Resorts Inc. in an offering in which an HNA Group Co. Ltd. affiliate is divesting its stake in the real estate investment trust.
HNA HLT Holdco I LLC, an affiliate of HNA Tourism Group Co. Ltd., owns a roughly 25% stake in the U.S.-based hotel owner, and is offering 34,479,524 shares at US$25.75 per share. Park Hotels is also expected to repurchase 14 million of its own common shares held by HNA HLT. After both transactions are complete, HNA will own no Park Hotels common shares.
The size of the underwritten share offering was increased from 32,950,000 shares, with an initial overallotment option of 4,942,500 shares. The transaction is expected to close March 9.
Park Hotels reiterated that it is not selling shares and will not receive any proceeds from the offering. HNA is also a major shareholder in Hilton Worldwide Holdings Inc., from which Park Hotel spun off in a 2016 transaction.
Barclays and J.P. Morgan are the joint book-running managers, while the underwriters for the offering are UBS Investment Bank, Goldman Sachs & Co. LLC, Morgan Stanley, Deutsche Bank Securities and Credit Suisse. Barclays and J.P. Morgan represent the underwriters, who also serve as joint book-running managers. BofA Merrill Lynch is Park Hotels' adviser on the offering.
