Hyatt Hotels Is Selling Bonds to Help Pay for Playa Purchase

James Crombie

Mon, Mar 17, 2025, 6:45 AM 1 min read

(Bloomberg) -- Hyatt Hotels Corp. plans to sell bonds on Monday to help fund its $2.6 billion purchase of Playa Hotels & Resorts, an owner of all-inclusive resorts in the Caribbean.

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The hospitality company, which manages, franchises, owns, and develops branded hotels, resorts, and residential and vacation ownership properties worldwide, is selling three-year and seven-year fixed-rate bonds.

The bond sale comes as the investment-grade primary bond market is expected to see increased activity, with around six issuers looking to sell debt on Monday.

The three-year notes are being marketed to yield 1.3 percentage points more than Treasuries, while the seven-year bonds are being offered at a yield of about 1.75 percentage points over the benchmark. Both tranches carry expected ratings of Baa3 from Moody’s Ratings, and BBB- from S&P Global Ratings and Fitch Ratings.

Hyatt’s offering includes a special mandatory redemption clause, which requires the company to redeem the notes at 101 percent of their principal amount plus accrued interest if the Playa Hotels Acquisition is not completed by October 9, 2025, or if the purchase agreement is terminated. But the bond sale isn’t contingent on the completion of the acquisition.

Issuer Profile

Debt distribution: H US Equity DDIS

Capital structure: H US Equity CAST

Related securities: H US Equity RELS

Ratings history: H US Equity CRPR

This story was produced with the assistance of Bloomberg Automation

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