Hilton Worldwide priced the $2.625 billion fixed-rate component with a term of five years from its CMBS deal today, according to a person familiar with the deal.

The JP Morgan, Deutsche Bank-led deal dubbed Hilton USA Trust 2013-HLT priced the $1.17 billion fixed rated, triple-A rated class A notes at 125 basis points over swaps. The fixed-rate, double-A minus  class B notes priced at 185 basis points over swaps; the fixed rate, single-A minus class C notes priced at 220 basis points over swaps;  the fixed rate, BBB minus class D notes priced at 290 basis points over swaps; and the fixed rate, double-B rated class E notes priced at 390 basis points over swaps.  

The deal’s $875 million floating-rate component with an initial term of two years and a fully extended maturity of five years, may be priced on “a staggered basis."                   

The deal, Hilton USA Trust 2013-HLT's issuance is backed by first mortgage liens or deed of trust liens on the borrowers' fee and leasehold interests in 23 full-service and limited-service hotels; all furniture, fixtures, and equipment and personal property owned by the borrowers used to operate the properties; and all reserves, escrows, and deposit accounts maintained by each borrower.

Standard & Poor’s, Moody’s Investor Service and Morningstar assigned preliminary ratings to 13 classes of notes. The deal is expected to close on Dec. 12.


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