Hyatt expands stock issue for Apple Leisure purchase

|
T0927HYATT_HR_C [Hyatt Hotels]
Hyatt intends to fund the ALG acquisition with a combination of $1 billion cash, new debt financing and equity financing. Photo Credit: Hyatt

Hyatt Hotels Corp. expanded a public offering slated to help fund the company's planned acquisition of Apple Leisure Group.

Previously, Hyatt said 7 million shares of Class A common stock would be available in the offering. Now, the underwriters of the stock sale have exercised an option to purchase an additional 1.05 million shares.

The total 8.05 million shares offered at $74.50 per share are expected to raise more than $575 million after deducting the underwriting discount and estimated expenses. 

Hyatt announced the ALG acquisition in August

The stock sale, however, is not contingent on the purchase of ALG, nor is the acquisition of ALG contingent on the completion of the offering, according to Hyatt. 

The company previously announced that it intends to fund more than 80% of the $2.7 billion purchase price with a combination of $1 billion of cash on hand and new debt financing, and the remainder with equity financing. 

If the ALG acquisition were to fall through, Hyatt said it would use the proceeds of the stock offering for general corporate purposes, which may include debt repayments or payment of fees and expenses related to the offering.

Comments

From Our Partners


From Our Partners

2021 Immersive Ireland
Make Ireland Your Destination
Register Now
Embassy Suites by Hilton Oahu Kapolei
Embassy Suites by Hilton Oahu Kapolei
Read More
2021 River Cruises PLUS use
River Cruises PLUS
Register Now

JDS Travel News JDS Viewpoints JDS Africa/MI