Hyatt Hotels Corp. expanded a public offering slated to help fund the company’s planned acquisition of Apple Leisure Group.
Previously, Hyatt said 7 million shares of Class A common stock would be available in the offering. Now, the underwriters of the stock sale have exercised an option to purchase an additional 1.05 million shares.
The total 8.05 million shares offered at $74.50 per share are expected to raise more than $575 million after deducting the underwriting discount and estimated expenses.
Hyatt announced the ALG acquisition in August.
The stock sale, however, is not contingent on the purchase of ALG, nor is the acquisition of ALG contingent on the completion of the offering, according to Hyatt.
- Related: Discussing ALG deal, Hyatt CEO highlights strength of leisure travel
The company previously announced that it intends to fund more than 80% of the $2.7 billion purchase price with a combination of $1 billion of cash on hand and new debt financing, and the remainder with equity financing.
If the ALG acquisition were to fall through, Hyatt said it would use the proceeds of the stock offering for general corporate purposes, which may include debt repayments or payment of fees and expenses related to the offering.
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