Hilton Grand Vacations completes $400 million securitization

Hilton Grand Vacations Inc. (NYSE: HGV) completed a $400 million securitization of timeshare loans through Hilton Grand Vacations Trust 2025-3EXT, the company announced.

The securitization included four classes of notes: approximately $141.2 million of Class A Notes with a 4.56% coupon rate, $146.6 million of Class B Notes at 4.90%, $81.4 million of Class C Notes at 5.39%, and $30.7 million of Class D Notes at 7.38%. The transaction carries an overall weighted average coupon rate of 5.07% and an advance rate of 96%.

The company plans to use proceeds from the issuance, net of fees, to pay down debt and for general corporate purposes, according to the press release.

"Completing our fourth transaction of the year and the third under the HGVT platform, marks significant progress towards the optimization of our financing business," said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations.

Deutsche Bank Securities served as the Structuring Lead Manager and Joint Bookrunner alongside BofA Securities, Barclays, Wells Fargo Securities and Truist Securities. CIBC Capital Markets, Citizens Capital Markets, Goldman Sachs & Co. LLC, HSBC, MUFG, Regions Securities LLC and R. Seelaus & Co., LLC served as Co-Managers.

The notes were offered in a private placement to qualified institutional buyers in the United States under Rule 144A and to certain non-U.S. persons under Regulation S. The notes have not been registered under the Securities Act of 1933. Certain classes of the transaction received ratings from Fitch Ratings and Moody's Investors Service.

You May Also Be Interested In

• Atlassian results seen as 'game changer' for AI kills software worries
• AMTD IDEA receives NYSE non-compliance notice over ADS price
• Bimini Capital Management (BMNM) Tops Q2 EPS by 4c