Hilton Grand Vacations completes $300 million securitization

Hilton Grand Vacations Inc. (NYSE: HGV) completed a $300 million securitization of timeshare loans through Hilton Grand Vacations Trust 2026-2, the company announced.

The securitization included four classes of notes: approximately $118.8 million of Class A Notes with a 4.83% coupon rate, $98.6 million of Class B Notes at 5.10%, $51.1 million of Class C Notes at 5.54%, and $31.5 million of Class D Notes at 6.00%. The overall weighted average coupon rate is 5.16% with an advance rate of 98%.

"Peak oversubscription reached nearly 9x, allowing us to achieve the tightest AAA spread in timeshare since January 2022," said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations.

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

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

The notes were offered through private placement within the U.S. to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons under Regulation S. Certain classes of the transaction received ratings from Fitch Ratings and Moody's Investors Service.

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