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Hilton Grand Vacations Inc. completes a $240 million securitization of legacy Bluegreen Vacations timeshare loans through Hilton Grand Vacations Trust 2024-1B. The transaction included four classes of Notes with varying coupon rates, resulting in an overall weighted average coupon rate of 6.42%. Proceeds will be used to pay down debt and for general corporate purposes, marking HGV's tenth term securitization of timeshare loans. The transaction received significant peak order demand with over 50 orders from more than 35 unique investors.
Hilton Grand Vacations Inc. ha completato una cartolarizzazione da 240 milioni di dollari di prestiti multiproprietà Bluegreen Vacations precedenti attraverso il Hilton Grand Vacations Trust 2024-1B. La transazione ha incluso quattro classi di Note con tassi di interesse variabili, risultando in un tasso medio ponderato di cedole del 6,42%. I proventi verranno utilizzati per ridurre il debito e per scopi aziendali generali, segnando la decima cartolarizzazione di prestiti per multiproprietà di HGV. La transazione ha ricevuto una significativa domanda massima iniziale, con oltre 50 ordini da più di 35 investitori diversi.
Hilton Grand Vacations Inc. ha completado una securitización de 240 millones de dólares de préstamos para tiempo compartido de Bluegreen Vacations antiguos mediante el Hilton Grand Vacations Trust 2024-1B. La operación incluyó cuatro clases de Notas con diversas tasas de cupón, resultando en una tasa promedio ponderada de cupones del 6,42%. Los ingresos se utilizarán para reducir deuda y para propósitos corporativos generales, marcando la décima securitización de préstamos para tiempo compartido por parte de HGV. La transacción recibió una demanda máxima significativa con más de 50 pedidos de más de 35 inversores únicos.
힐튼 그랜드 베케이션스 Inc.는 힐튼 그랜드 베케이션스 트러스트 2024-1B를 통해 레거시 블루그린 베케이션즈의 타임셰어 대출 2억 4천만 달러를 유동화를 완료하였습니다. 이 거래에는 다양한 쿠폰률을 가진 네 가지 클래스의 노트가 포함되었으며 전체 가중평균 쿠폰률은 6.42%였습니다. 수익금은 부채 상환 및 일반 기업 목적을 위해 사용될 것이며, 이는 HGV의 타임셰어 대출에 대한 열 번째 장기 유동화가 됩니다. 이 거래는 35명 이상의 독특한 투자자들로부터 50회 이상의 주문을 받으며 높은 최대 주문 수요를 기록하였습니다.
Hilton Grand Vacations Inc. a complété une titrisation de 240 millions de dollars de prêts timeshare hérités de Bluegreen Vacations via le Hilton Grand Vacations Trust 2024-1B. La transaction comprenait quatre classes de Notes avec des taux de coupons variés, donnant lieu à un taux moyen pondéré de coupon de 6,42%. Les recettes seront utilisées pour rembourser la dette et à des fins corporatives générales, marquant la dixième titrisation de prêts timeshare par HGV. La transaction a reçu une demande de pointe significative avec plus de 50 ordres de plus de 35 investisseurs uniques.
Hilton Grand Vacations Inc. hat eine $240 Millionen Securitization herkömmlicher Bluegreen Vacations Zeitschuldendarlehen durch den Hilton Grand Vacations Trust 2024-1B abgeschlossen. Die Transaktion umfasste vier Klassen von Wertpapieren mit unterschiedlichen Kuponsätzen, was zu einer insgesamt gewichteten durchschnittlichen Kuponrate von 6,42% führte. Die Erlöse werden verwendet, um Schulden zu tilgen und für allgemeine Unternehmenszwecke, was die zehnte termingerechte Securitization von Zeitschuldendarlehen von HGV markiert. Die Transaktion erhielt eine signifikante Spitzenauftragsnachfrage mit über 50 Bestellungen von mehr als 35 einzigartigen Investoren.
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Hilton Grand Vacations Inc.'s securitization transaction is a strategic financial move with visible implications. By securitizing timeshare loans, the company is effectively converting illiquid assets into liquid capital. The $240 million> raised, less fees, earmarked for debt reduction and general corporate purposes, should bolster the company's balance sheet. An advance rate of 90.5%> is high, indicating a significant portion of the loan's par value has been financed. This can suggest confidence in the underlying loan quality or market demand. Investors should note the weighted average coupon rate of 6.42%>, which reflects the cost of borrowing against these loans. It is imperative to consider how this rate compares to industry benchmarks and current interest rates to gauge the deal's attractiveness. Increased investor interest is doubly notable, suggesting the market's positive reception to Hilton's branding and financial engineering.
From a credit risk perspective, the diversification of investors and oversubscription is a positive indicator of market trust. However, investors should consider the inherent risks of timeshare loan-backed securities. Timeshare loans might differ in default probabilities compared to traditional lodging revenue streams, which could impact the performance of the issued Notes. Moreover, the ratings by S&P and Fitch should be scrutinized, as they reflect the creditworthiness of the Notes. The tiered structure of the Notes, with varying coupon rates from 5.75%> to 8.85%>, implies differing levels of risk acceptance, with the lower classes (C and D) being most at risk of default. For retail investors, this transaction underscores the importance of understanding the nuances of asset-backed securities and the particular characteristics of the underlying loans.
ORLANDO, Fla.--(BUSINESS WIRE)--
Hilton Grand Vacations Inc. (NYSE:HGV) announces today the completion of a $240 million securitization of legacy Bluegreen Vacations timeshare loans through Hilton Grand Vacations Trust 2024-1B (“the Trust”). Four classes of Notes were issued by the Trust, including approximately $101 million of Class A Notes, approximately $58 million of Class B Notes, approximately $46 million of Class C notes, and approximately $35 million of Class D Notes.
The Class A Notes have a coupon rate of 5.75%, the Class B Notes have a coupon rate of 5.99%, the Class C Notes have a coupon rate of 6.62%, and the Class D Notes have a coupon rate of 8.85% for an overall weighted average coupon rate of 6.42%, and an overall advance rate of 90.5%.
“We’re pleased with the nearly 9.2x peak subscription levels on this transaction, reflecting continued strong execution on our leading capital markets platform,” said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations. “This highlights the strength of our brand and market position as we nearly quadrupled Bluegreen Vacations’ historical investor base on HGV’s first securitization of Bluegreen Vacations collateral, further positioning us to execute on our sales and marketing initiatives.”
Proceeds of the issuance, net of fees, will be used to pay down debt and for other general corporate purposes.
This transaction marks HGV’s tenth term securitization of timeshare loans, and the first issuance of legacy Bluegreen Vacations collateral under the HGVT issuance shelf. The transaction saw significant peak order demand with over 50 orders from more than 35 unique investors.
BofA Securities served as the Structuring Lead Manager and Joint Bookrunner along with Citizens Capital Markets and Truist Securities. Deutsche Bank Securities, Wells Fargo Securities, Barclays, MUFG, Goldman Sachs & Co. LLC, Academy Securities, and Regions Securities LLC served as Co-Managers. Alston and Bird LLP represented HGV as issuer counsel.
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. Certain classes of the transaction were rated by Standard & Poor’s Financial Services LLC (S&P) and Fitch Ratings (Fitch).
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 and is the exclusive vacation ownership partner of Hilton. 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. Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and approximately 700,000 Club Members. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world.
hilton grand vacations company, llc, is a division of hilton hotels corporation, recognized as the leading global hospitality company. headquartered 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 127,000 club members. hilton grand vacations provides comprehensive on-site management services to all club resorts, including the operation of owner rental programs, resort recreational programs and retail outlets. additionally the company operates one of the industry’s most successful resale programs for its managed resort properties.
