Hilton Grand Vacations Completes $300 Million Term Securitization
June 10 2020 - 04:30PM
Business Wire
Hilton Grand Vacations Inc. (NYSE:HGV) announces today the
completion of a $300 million securitization of vacation ownership
loans through Hilton Grand Vacations Trust 2020-A (“the Trust”).
Three classes of Notes were issued by the Trust, including
approximately $186 million of Class A Notes, approximately $66
million of Class B Notes and approximately $48 million of Class C
Notes.
The Class A Notes have an interest rate of 2.74%, the Class B
Notes have an interest rate of 4.22% and the Class C Notes have an
interest rate of 6.42%, for an overall weighted average interest
rate of 3.66% and overall advance rate of 91%.
“We had great execution on our 2020 ABS offering despite a
volatile economic environment,” said Dan Mathewes, chief financial
officer of Hilton Grand Vacations. “Demand was extremely robust
with peak orders topping out at a record $4.2 billion resulting in
a nearly 14x over-subscription, which allowed us to tighten our
initial pricing.”
Proceeds of the issuance, net of fees, will be used to pay down
debt and for other general corporate purposes.
The Company also recently reopened a number of its properties in
the Florida, Nevada, South Carolina and Utah markets. It expects to
open the remainder of its properties over the coming months. An
updated list of operating properties can be found at:
hiltongrandvacations.com/en/travel-alert.
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. The transaction was rated by Standard & Poor’s Financial
Services LLC (S&P) and Fitch Ratings, Inc.
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. The company also manages and operates
two innovative club membership programs: Hilton Grand Vacations
Club® and The Hilton Club®, providing exclusive exchange, leisure
travel and reservation services for more than 325,000 club members.
For more information, visit www.hiltongrandvacations.com.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200610005819/en/
Investors: Mark Melnyk 407-613-3327 mark.melnyk@hgv.com
Media: Lauren George 407-613-8431 lauren.george@hgv.com
Hilton Grand Vacations (NYSE:HGV)
Historical Stock Chart
From Feb 2024 to Mar 2024
Hilton Grand Vacations (NYSE:HGV)
Historical Stock Chart
From Mar 2023 to Mar 2024