Hyatt announces, public offering of 7,000,000 shares of common stock
The offering is subject to market and other customary conditions
Hyatt Hotels Corporation announced that it has commenced an underwritten registered public offering of 7,000,000 shares of its Class A common stock. In addition, the company intends to grant the underwriters a 30-day option to purchase up to an additional 1,050,000 shares of its Class A common stock. The offering is subject to market and other customary conditions.
The Company intends to use the net proceeds of the offering to fund a portion of the purchase price for its pending acquisition of Apple Leisure Group, 'Apple Leisure Group Acquisition'. Hyatt, previously announced that it intends to fund more than 80% of the $2.7 billion purchase price for the Apple Leisure Group Acquisition with a combination of $1.0 billion of cash on hand and new debt financing, and the remainder with equity financing. If the Apple Leisure Group Acquisition is not consummated, the company intends to use the proceeds of the offering for general corporate purposes, which may include repayment of indebtedness or payment of fees and expenses related to the offering. The offering is not contingent on the consummation of the Apple Leisure Group Acquisition or vice-versa.
J.P. Morgan is acting as the representative of the underwriters, and J.P. Morgan, BofA Securities and Goldman Sachs & Co. LLC are acting as joint lead book-running managers, for the offering.
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