EFTA01378340

INTERNAL USE ONLY DO NOT DISTRIBUTE IN PART OR IN WHOLE Corporate Credit > U.S. High Yield Hilton Worldwide Updated: November 4, 2015 Trade Idea: Buy the HLT 5.625% unsecured bond maturing in 2021 yielding 3.4% Investment Rationale: o Hilton is one of the largest lodging companies in the US and has been focused on growing their brands internationally. HLT's future growth is mostly capital light. k The company has a strong management team. o Hilton has a market cap of $25.35 billion approximately. o HIT reported solid 3Q results helped by a 5.8% increase in system-wide REVPAR on a constant currency basis. HIT expects FY 2015 REVPAR to grow by 5-7% and EBITDA of approximately $2.84-2.87 billion. o HIT FY 2016 guidance calls for REVPAR growth of 4-6%. o Management is committed to an IG rating & we continue to expect an upgrade to IG over the next 12 months. Recommendation(s): 6montnt T trn 63, 10/13/2021 N.rting, }AP 83 USD I SOO 3S 041 211 104 107 7 1W 13,03.W4 Deutsche Asset & Weah Management 49 CONFIDENTIAL - PURSUANT TO FED. R. CRIM. P. 6(e) CONFIDENTIAL DB-SDNY-0075509 SDNY_GM_00221693 EFTA01378340