(Bloomberg)—Park Hotels & Resorts Inc. has held discussions with lenders including Bank of America Corp. about a potential $500 million high-yield bond offering, according to a person with knowledge of the matter.
The Tysons, Virginia-based real estate investment trust, which was spun out of Hilton Worldwide Holdings Inc., has sought credit ratings ahead of what would be an inaugural junk bond, said the person, who requested anonymity because the talks are private. The company could launch a transaction as soon as this week, the person added.
Spokesmen for Park Hotels and Bank of America declined to comment.
Companies including cruise line operators, airlines and hotel chains have sold bonds in recent weeks to shore up liquidity as a global pandemic keeps travelers at home. Park Hotels, like many of its rivals, has seen the value of its shares plummet. Its stock has tumbled more than 65% year-to-date, giving it a market value of about $1.9 billion.
In delivering first-quarter earnings earlier Monday, the company said it had suspended operations at 38 of its 60 hotels due to Covid-19, and had reduced the capacity at its remaining hotels to 15%. Its portfolio includes the Hilton Hawaiian Village Waikiki Beach Resort, the Hilton San Francisco Union Square and the New York Hilton Midtown.
Suraj Shrestha is an associate at Harborside Partners. He has been taking the lead role on research projects; to develop and implement online marketing strategies for search engine optimization and social media marketing. He is one of the core parts for helping to grow business revenue and the company’s online presence.