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Assured Guaranty Ltd. Message Board

  • domsam100 domsam100 Nov 26, 2010 12:28 PM Flag

    Hilton Hotel exch traded notes HLNQ

    Jim, Tony and others,

    The notes are trading now on Finra.

    Do you know if they are being paid the coupons?

    Any opinions on these notes?

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    • Since Hilton and HLNQ are owned by Blackstone -BX- there has been some discussion on owning HLNQ on the BX Message Board, so I'll follow through there on trying to buy some. Apparently we are not the first, or latest...

    • _"Today the prices are near 17.5-17.75. The offer sizes seem to be a problem."_

      Prophet, the above prices were from Finra.

      I live outside of USA, and my account is with a bank which is located outside of USA.

      So far my bank did not find any offers.

    • Hi Jim and Prophet,

      Getting together at the Black Walnut for lunch sounds like a great idea for either a Saturday or Sunday. Jim, incidentally, the vacation in China was one of the best vacations I've ever taken. I've got a few pictures to show you.

      Take care,


      • 1 Reply to tony27719
      • Tony & Jim:

        If you guys are serious about meeting at the Black Walnut, I would be pleased to join you.

        I looked at the menu looks very nice.

        I have to say it would be interesting to talk to other investors in person. My only contact with other investors is via internet message boards. None of my friends or co-workers have any significant interest in the world of investments. They are not conversant in investments and their strictly mutual fund investors. It would be fun. However, I can't do it this Saturday, December 4.

    • Prophet,

      Vanguard must have screwed up. I gave them the CUSIP that you gave me, not the old ticker. If you got the payment that's all that matters.

    • Domsam,

      Are you certain you received the quarterly payment in November? I spoke to Vanguard's Fixed Income Dept. this morning and they said that the info from their Bloomberg terminal shows the last payment made was the May 15 payment.

      • 2 Replies to tony27719
      • Tony:

        Just for the record, I also re-confirmed that I did in fact receive the August 15 interest payment.

        I suspect that the HLNQ notes were delisted sometime between the May 15 and the August 15 interest payments (I can confirm the date of the delisting when I get home from work). Vanguard is probably checking the Bloomberg terminal for the old ticker symbol HLNQ which is no longer valid. Vanguard will need to find the updated payment information using the CUSIP....which is.....432848307

      • Tony:

        It was I that confirmed that the HLNQ note interest payments are current.

        HLNQ interest is paid Feb 15, May 15, Aug 15, and Nov 15. The interest payment was credited promptly in my Fidelity account on November 15. So, as of 2 weeks ago, the notes are NOT in default.

    • HI Domsam and Prophet,

      I haven't looked at HLNQ in ages. Out of curiosity I looked at its activity on TRACE and saw it's been trading recently around 16 to 17 and will try and buy it. I like to have a large number of issues from different industries for diversification purposes. This would be my first investment in the hotel industry.

    • Domsam:

      I own some of the HLNQ exchange traded debt. The bonds are paying interest on time as of the last payment on November 15.

      Even though the bonds are not rated, they are quite safe. Blackstone has re-structured (and extended maturities) on a huge amount of their bank debt and added more equity. Times are still tough for hotels but Hilton is one of the most premier franchises and will absolutely survive to service their debt. Obviously, these are qualitative comments b/c there are no public financials available for review. But you can take confidence in the fact that Blackstone literally has billions of dry powder available for new investment. Hilton will do fine on their own but if Hilton were to hit a "tough patch" you can bet that Blackstone will "pony up" any necessary funds. Blackstone initially paid something like $25 billion inclusive of the leveraged buyout debt and they are not going to let Hilton be broken up by the creditors in a bankruptcy. No matter what they'll keep Hilton intact until they can take it public again. In Feb 2010 when Blackstone restructured the Hilton debt they had to add more equity to get the banks to agree to the restructuring....another clear sign.

      Good luck trying to buy any HLNQ. I sold down to only 1000 shares before HLNQ was delisted. I've been trying to buy back as many shares as I can find, but I can't find any to buy.

      Are you aware of any brokers that have any shares to sell? If so, please let me know.

      • 1 Reply to prophet43m
      • With apologies to AGO message board, once a bond issue gets relegated to FINRA, it seems to be the wild west out there for buying or selling. We saw it happen with the AGO mini-bonds. One OUGHT to be able to buy or sell through a major trading desk like Merrill Lynch or MorganStanley SmithBarney using the Cusip #, but not so sure about buying through a smaller outfit like Vanguard, though it ought to be simple enough. FINRA reports that the HNLQ cusip # is trading around $16, which either means its in danger of Chap 11 and should be rated a single C, or else sellers are getting "violated". I suspect the latter... :-).

        Prophet43, are other Hilton bonds trading in the vicinity of par? I find it difficult to track actual bond prices. Blackrock does not seem particularly interested in seeing HLN's QUIBs get re-listed. I'd be interested some buying some also. I had some HSTpE until the got redeemed earlier this year.

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