Hilton Grand Vacations Completes $246 Million Term Securitization
April 21 2022 - 4:15PM
Business Wire
Hilton Grand Vacations Inc. (NYSE:HGV) announces today the
completion of a $246 million securitization of legacy Diamond
vacation ownership loans through Hilton Grand Vacations Trust
2022-1D (“the Trust”). Four classes of Notes were issued by the
Trust, including approximately $106 million of Class A Notes,
approximately $84 million of Class B Notes, approximately $22
million of Class C Notes, and approximately $33 million of Class D
Notes.
The Class A Notes have an interest rate of 3.61%, the Class B
Notes have an interest rate of 4.10%, the Class C Notes have an
interest rate of 4.69%, and the Class D Notes have an interest rate
of 6.79%, for an overall weighted average interest rate of 4.30%
and overall advance rate of 95%.
“Despite a volatile economic environment, we had excellent
execution on our 2022 ABS offering,” said Dan Mathewes, chief
financial officer of Hilton Grand Vacations. “Demand was incredibly
robust with orders peaking at $2.2 billion, yielding nearly 8.8x
over-subscription, which allowed us to tighten our initial pricing
significantly.”
Proceeds of the issuance, net of fees, will be used to pay down
debt and for other general corporate purposes.
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, and have not been and will not be registered
thereunder. 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. The
transaction was rated by Standard & Poor’s Financial Services
LLC (S&P) and Moody’s Investor Service, Inc (Moody’s).
Important Notice
The statements in this press release may include forward-looking
statements within the meaning of Section 27A of the Securities Act
and Section 21E of the Exchange Act. Words such as “may,” “will,”
“seeks,” “anticipates,” “believes,” “estimates,” “expects,”
“plans,” “intends,” “would,” “could,” or similar expressions
indicate a forward-looking statement; however, not all
forward-looking statements include these identifying words. These
forward looking statements involve substantial risks and
uncertainties that could cause the outcome to be materially
different, including the material impact of the COVID-19 pandemic
on the Company’s business, operating results and financial
condition, general economic conditions, the actual timing and
status of, or any disruptions to, the re-opening of the Company’s
properties, as well as those factors that are discussed under the
“Risk Factors” and “Management’s Discussion and Analysis of
Financial Condition and Results of Operations” sections of the
Company’s most recent Annual Report on Form 10-K and any subsequent
Quarterly Reports on Form 10-Q and Current Reports on Form 8-K that
may update or supplement such disclosure. These factors should not
be construed as exhaustive and should be read in conjunction with
the other cautionary statements that are included in the Company’s
other filings with the Securities and Exchange Commission. Further,
forward-looking statements speak only as of the date they are made,
and the Company undertakes no obligation to update or revise
forward-looking statements to reflect changed assumptions, the
occurrence of unanticipated events or changes to future operating
results over time, except as required by law.
About Hilton Grand Vacations Inc.
Hilton Grand Vacations Inc. (NYSE:HGV) is recognized as a
leading global timeshare company. 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. As one of Hilton’s 18 premier brands,
Hilton Grand Vacations has a reputation for delivering a
consistently exceptional standard of service, and unforgettable
vacation experiences for guests and more than 710,000 owners.
Membership with the Company provides best-in-class programs,
exclusive services and maximum flexibility for our Members around
the world. For more information, visit
www.hiltongrandvacations.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20220420005916/en/
Investors: Mark Melnyk 407-613-3327 mark.melnyk@hgv.com
Media: Lauren George 407-613-8431 lauren.george@hgv.com
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