Hilton Grand Vacations completed a $375 million securitization of timeshare loans through Hilton Grand Vacations Trust 2024-2 (HGVT). Four classes of notes were issued by HGVT, including approximately $217 million of Class A notes (with a coupon rate of 5.50%), approximately $80 million of Class B notes (with a coupon rate of 5.65%), approximately $57 million of Class C notes (with a coupon rate of 5.99%) and approximately $21 million of Class D notes (with a coupon rate of 6.91%). The notes have an overall advance rate of 99%.
“Even amidst a busy issuance calendar, interest from investors in the HGVT platform remains strong,” Dan Mathewes, president and chief financial officer of Hilton Grand Vacations, said. “With peak oversubscription of 5.2x, we were able to successfully achieve the tightest AAA spread in the timeshare ABS market since March 2022.”
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 11th term securitization of timeshare loans, and the first issuance of The Grand Islander, a Hilton Grand Vacations Club collateral under the HGVT platform.
BofA Securities served as the structuring lead manager and joint bookrunner along with Barclays, Deutsche Bank Securities, Goldman Sachs, MUFG and Wells Fargo Securities. Citizens Capital Markets, Regions Securities, R. Seelaus and Truist Securities served as a co-managers. Alston and Bird 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.
