What were the proceeds from debt, net of offering expenses, for Caption By Hyatt in 2023?
Caption_By_Hyatt Franchise · 2025 FDDAnswer from 2025 FDD Document
we issued $700 million of 1.300% senior notes due 2023 at an issue price of 99.941% (the "2023 Fixed Rate Notes"), $300 million of floating rate senior notes due 2023 (the "2023 Floating Rate Notes"), and $750 million of 1.800% senior notes due 2024 at an issue price of 99.994% (the "2024 Fixed Rate Notes").
- In 2023, we issued $600 million of 5.750% senior notes due 2027 at an issue price of 99.975% (the "2027 Notes"). We received approximately $596 million of net proceeds from the sale, after deducting $4 million of underwriting discounts and other offering expenses. We used the net proceeds from the senior notes issuance, together with cash on hand, to repay the outstanding balance on the 2023 Fixed Rate Notes, as described below.
Source: Item 21 — Financial Statements (FDD pages 84–85)
What This Means (2025 FDD)
According to Caption By Hyatt's 2025 Franchise Disclosure Document, in 2023, Hyatt issued $600 million of 5.750% senior notes due 2027. These notes were issued at a price of 99.975%. After deducting $4 million in underwriting discounts and other offering expenses, Caption By Hyatt received approximately $596 million in net proceeds from the sale of these senior notes.
Caption By Hyatt used these net proceeds, along with cash on hand, to repay the outstanding balance on the 2023 Fixed Rate Notes. This included repaying $638 million of outstanding notes at maturity for approximately $642 million, which includes $4 million of accrued interest. Additionally, Caption By Hyatt repurchased approximately $18 million of principal on the 2023 Fixed Rate Notes in the open market.
This information is relevant for prospective Caption By Hyatt franchisees as it provides insight into the company's financing activities and how it manages its debt. Understanding the company's financial strategies can help franchisees assess the financial stability and overall health of the company.