HNA Tourism Group Co. Ltd. affiliate HNA HLT Holdco I LLC priced its offering of Park Hotels & Resorts Inc. shares at US$25.75 apiece.
The company also increased the number of shares for sale to 34,479,524, up from the initial 32,950,000 shares. It also increased the overallotment option granted to underwriters to 5,171,929 shares, up from 4,942,500 shares.
The offering is expected to close March 9.
HNA HLT also gave Park Hotels an option to buy back up to 15,750,000 shares at US$24.85 per share. The hotel-focused real estate investment trust exercised the option with respect to 14,000,000 shares and will retire the repurchased shares.
Chinese conglomerate HNA Group Co. Ltd., the parent of HNA Tourism, holds a roughly 25% stake worth about US$1.38 billion in Park Hotels, which was spun off from Hilton Worldwide Holdings Inc.
Park Hotels will not receive any proceeds from the offering.
Barclays and J. P. Morgan are acting as joint book-running managers and representatives of the underwriters for the offering. UBS Investment Bank, Goldman Sachs & Co. LLC, Morgan Stanley, Deutsche Bank Securities and Credit Suisse are also acting as joint book-running managers and underwriters with respect to the offering, for which Park Hotels is being advised by BofA Merrill Lynch.
