Hilton Grand Vacations Completes $500 Million Term Securitization

Published a month ago via Business Wire

Hilton Grand Vacations Inc. (NYSE:HGV) announces today the completion of a $500 million securitization of timeshare loans through Hilton Grand Vacations Trust 2024-3 (“the Trust”). Three classes of Notes were issued by the Trust, including approximately $273 million of Class A Notes, approximately $147 million of Class B Notes, and approximately $80 million of Class C Notes.

The Class A Notes have a coupon rate of 4.98%, the Class B Notes have a coupon rate of 5.27%, and the Class C Notes have a coupon rate of 5.71%, for an overall weighted average coupon rate of 5.18%, and an overall advance rate of 98%.

“Our largest securitization to date reinforces HGV’s leading market position and strengthens our progress toward achieving synergy targets,” said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations. “We’re happy to announce we consolidated legacy Bluegreen Vacations timeshare loans with HGV deed and trust loans under a single platform, while still achieving an optimized structure of investment grade ratings and a 98% advance rate.”

Proceeds of the issuance, net of fees, will be used to pay down debt and for other general corporate purposes.

This transaction marks HGV’s 12th term securitization of timeshare loans, and the first issuance to include HGV, Diamond Resorts, and Bluegreen Vacations collateral combined under the Hilton Grand Vacations Trust platform.

Deutsche Bank Securities served as the Structuring Lead Manager and Joint Bookrunner along with BofA Securities, Wells Fargo Securities, Barclays, Goldman Sachs & Co. LLC, and MUFG. Citizens Capital Markets, Regions Securities LLC, Truist Securities, and Academy Securities served as Co-Managers. Alston and Bird LLP represented HGV as issuer counsel.

The Notes were offered in a private placement within the U.S. to qualified institutional buyers pursuant to Rule 144A and outside the U.S. in accordance with Regulation S under the Securities Act of 1933, as amended. This press release is an announcement of record only and does not constitute an offer to sell or the solicitation of an offer to buy the Notes, all of which have been sold. Certain classes of the transaction were rated by Standard & Poor’s Financial Services LLC (S&P) and Fitch Ratings (Fitch).

Important Notice

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management’s expectations as to the future of HGV, and are based on management’s beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time HGV makes such statements. Forward-looking statements include all statements that are not historical facts, and may be identified by terminology such as the words “outlook,” “believe,” “expect,” “potential,” “goal,” “continues,” “may,” “will,” “should,” “could,” “would,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “future,” “guidance,” “target,” or the negative version of these words or other comparable words, although not all forward-looking statements may contain such words. The forward-looking statements contained in this press release include statements related to HGV’s revenues, earnings, taxes, cash flow and related financial and operating measures, and expectations with respect to future operating, financial and business performance and other anticipated future events and expectations that are not historical facts. HGV cautions you that our forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV’s control, which may cause the actual results, performance or achievements to be materially different from the future results. Any one or more of these risks or uncertainties could adversely impact HGV’s operations, revenue, operating profits and margins, key business operational metrics, financial condition or credit rating. For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in HGV’s most recent Annual Report on Form 10-K, which may be supplemented and updated by the risk factors in HGV’s quarterly reports, current reports and other filings HGV makes with the SEC. HGV’s forward-looking statements speak only as of the date of this communication or as of the date they are made. HGV disclaims any intent or obligation to update any “forward-looking statement” made in this communication to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

About Hilton Grand Vacations Inc.

Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a leading global timeshare company and is the exclusive vacation ownership partner of Hilton. With headquarters in Orlando, Florida, Hilton Grand Vacations develops, markets, and operates a system of brand-name, high-quality vacation ownership resorts in select vacation destinations. Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and approximately 720,000 Club Members. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world.

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