ORLANDO, Fla.–(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 2019-A (“the Trust”). Three classes of Notes were issued by the Trust, including approximately $215 million of Class A Notes, approximately $50 million of Class B Notes and approximately $34 million of Class C Notes.
The Class A Notes have an interest rate of 2.34%, the Class B Notes have an interest rate of 2.54% and the Class C Notes have an interest rate of 2.84%, for an overall weighted average interest rate of 2.43%.
“We are pleased with the execution on our 2019 ABS offering,” said Dan Mathewes, chief financial officer of Hilton Grand Vacations. “We continue to see strong support from the capital markets, which allowed us to complete an oversubscribed securitization at the lowest funding levels since our 2014-A deal.”
Proceeds of the issuance, net of fees, will be used to pay down debt and for other general corporate purposes, including inventory investments.
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.
Statements in this press release that are not historical facts may be forward-looking statements. Words such as “anticipates,” “believes,” “expects,” “intends” or similar expressions indicate a forward-looking statement, although not all forward-looking statements include these words. Forward-looking statements involve risks and uncertainties that could cause actual results to be materially different.
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 315,000 club members. For more information, visit www.hgv.com and www.hiltongrandvacations.com.