Moody’s downgrades outlook on ratings of HNA-owned Swissport as loan repayment concerns
HNA, which is rushing to sell assets and pay down debt, will raise US$896m from a secondary offering in Park Hotels and Resorts, the property arm of Hilton
Moody’s Investors Service on Wednesday downgraded the outlook on all the ratings of HNA-owned Swissport Group and its units from stable to negative, citing concerns about the airport cargo handler’s potential failure to collect loan repayment from an HNA affiliate and cash flow problems.
Separately, Park Hotels & Resorts, the real-estate spin-off of Hilton Worldwide Holdings, said in a statement on Tuesday night US time that HNA has priced a secondary offering of its 34.48 million shares at US$25.75 apiece. The deal, expected to close on March 9, will raise US$896.8 million.
The statement came days after Park Hotels said HNA was seeking to offload its 25 per cent stake, or 53.65 million shares, in the US company, as the Chinese conglomerate races to raise cash to tackle its debt.
The 25 per cent stake in Park Hotels is worth about US$1.4 billion based on its current market cap.
HNA, laden with huge debt, has been looking for ways to pay down debt as Chinese authorities tighten the screws on overseas investment and acquisition sprees by domestic corporate heavyweights.