Choice Hotels Announces Pricing Of Senior Notes Offering
Rhea-AI Summary
Choice Hotels International announced the pricing of $600 million in senior notes through an underwritten, registered public offering. The notes, maturing on August 1, 2034, will bear an interest rate of 5.850% and be issued at 98.929% of par value. The proceeds will mainly repay a $500 million unsecured term loan, with remaining funds for general corporate purposes. The offering, expected to close by July 2, 2024, is under an automatic shelf registration statement filed with the SEC. The joint book-running managers for the offering include Wells Fargo Securities, BofA Securities, Goldman Sachs, and Truist Securities.
Positive
- Choice Hotels successfully priced $600 million senior notes, demonstrating strong market confidence.
- The notes bear a favorable interest rate of 5.850%, maturing in 2034.
- Proceeds will be effectively used to repay a $500 million unsecured term loan, improving financial stability.
Negative
- The senior notes are issued at 98.929% of par value, indicating a slight discount.
News Market Reaction – CHH
In the trading session that priced this news, CHH declined 1.85%, reflecting a mild negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
AI-generated analysis. How Rhea-AI works. Not financial advice.
The notes will mature on August 1, 2034, will bear interest at a rate of
The Company intends to use the net proceeds from the offering to repay its
Wells Fargo Securities, LLC, BofA Securities, Inc., Goldman Sachs & Co. LLC and Truist Securities, Inc. are acting as joint book-running managers for the offering. The offering may be made only by means of a preliminary prospectus supplement and the accompanying prospectus. A copy of the preliminary prospectus supplement and the accompanying prospectus related to the offering may be obtained from any of the following: Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000,
A copy of the prospectus included in the registration statement may also be obtained from the SEC's website at www.sec.gov.
This press release shall not constitute an offer to sell nor the solicitation of an offer to buy any security, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
About Choice Hotels ®
Choice Hotels International, Inc. (NYSE: CHH) is one of the largest lodging franchisors in the world, with nearly 7,500 hotels, representing more than 630,000 rooms, in 45 countries and territories as of March 31, 2024. A diverse portfolio of 22 brands that range from full-service upper upscale properties to midscale, extended stay, and economy enables Choice® to meet travelers' needs in more places and for more occasions while driving more value for franchise owners and shareholders. The award-winning Choice Privileges® rewards program and co-brand credit card options provide members with a fast and easy way to earn reward nights and personalized perks.
Forward-Looking Statements
When used within this press release, the words "expects," "believes," "anticipates," "plans," "would," "should," "may," "estimates," and similar expressions are intended to identify "forward-looking statements," including but not limited to, statements about the completion, timing, and size of the proposed offering of securities by the Company and the use of net proceeds of such offering. Such forward-looking statements involve known and unknown risks, uncertainties, and other factors, which may cause our actual results to be materially different from those expressed or implied in the forward-looking statements. Such factors include market conditions and the demand for the Company's securities, as well as the risks detailed in the Company's preliminary prospectus supplement and the accompanying prospectus filed with the SEC in connection with this offering and in the Company's other filings with the SEC, including our Annual Report on Form 10-K, our Quarterly Reports on Form 10-Q, and our Current Reports on Form 8-K. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise, except as required by law.
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SOURCE Choice Hotels International, Inc.