Hyatt Hotels Corp. has successfully issued $1 billion in bonds to assist in financing its intended acquisition of Playa Hotels & Resorts NV, a company that owns all-inclusive resorts in the Caribbean, for $2.6 billion. The bond sale comprises $500 million each of three-year and seven-year fixed-rate bonds. The three-year notes offer a yield that is 1.05 percentage points higher than Treasuries, while the seven-year debt has a premium of 1.55 percentage points. This transaction was one of six investment-grade offerings in the US on Monday, coming ahead of the Federal Reserve's monetary policy meeting for the week.

A special mandatory redemption provision is included in the offering by Hyatt. If the Playa acquisition is not finalized by October 9 or if the purchase agreement is terminated, the company must redeem the notes at 101% of their face value plus accumulated interest. The completion of the bond sale is not dependent on the acquisition process.

The Issuer Profile provides information on Hyatt's debt distribution, capital structure, and related securities, along with its ratings history. This article has been created with the support of Bloomberg Automation, and includes updates on the pricing of the deal.