Hilton Grand Vacations Announces Upsized and Consolidated $750 Million Warehouse Facility
May 04 2022 - 8:45AM
Business Wire
Hilton Grand Vacations Inc. (NYSE:HGV) announces today the
completion of an upsized $750 million revolving warehouse facility,
which will accommodate both right-to-use and deeded inventory.
The main benchmark rate of the facility is one-month term SOFR
and includes customary used and unused fees, some of which will be
based on the achievement of key environmental, social and
governance ("ESG") performance indicators. The maximum advance rate
increased from 87.5% to 90% and the facility will have a revolving
period ending May 2024, with final maturity in May 2025.
“We are very pleased to announce this deal, which marks a major
step in the combination of our non-recourse capital markets
platforms and generates sizable synergies,” said Dan Mathewes,
chief financial officer of Hilton Grand Vacations. “We appreciate
the continued support of our banking partners and the ability to
broaden out the capital commitments, which has allowed us to
meaningfully compress pricing on the legacy Diamond
facilities.”
This transaction marks the first time the Company has
incorporated ESG-based triggers into its pricing structure. Bank of
America will remain the administrative agent of the facility, and
capital committed will come from Bank of America, Deutsche Bank
Securities Inc., Wells Fargo Securities, Barclays Bank PLC, Credit
Suisse, MUFG Bank, Ltd., Citizens Financial, Regions Securities and
Truist Securities. Alston & Bird LLP represented HGV as issuer
counsel.
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 integration of Diamond, 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/20220503005863/en/
Investor: Mark Melnyk 407-613-3327 mark.melnyk@hgv.com
Media: Lauren George 407-613-8431 lauren.george@hgv.com
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