Hilton Grand Vacations Completes $240 Million Term Securitization

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).