Hilton Grand Vacations Completes $300 Million Term Note Securitization

Key Terms

securitization financial

Securitization is when a bank or company takes a bunch of loans or assets, like mortgages or car loans, and bundles them together into a single package. They then sell pieces of this package to investors, who receive regular payments from the borrowers. This process helps the original lender get money quickly and spreads the risk among many investors.

advance rate financial

The advance rate is the percentage of an asset’s appraised or stated value that a lender is willing to loan against, commonly used for receivables, inventory, or property. For investors it shows how much immediate cash a company can raise from its assets — like the share of value a pawnbroker will lend you — and affects liquidity, borrowing capacity and perceived credit risk.

oversubscription financial

Oversubscription happens when more money or orders are offered for a new stock, bond, or share sale than the issuer planned to sell. Think of it like a concert with more people wanting tickets than there are seats: demand outstrips supply, so allocations may be reduced and prices often jump when trading begins. For investors, oversubscription signals strong market interest but also means you may receive fewer shares than you requested and face immediate price volatility.

AAA financial

AAA is the highest credit rating assigned to a borrower or bond, indicating the strongest capacity to meet interest and principal payments. For investors, it signals very low risk of default—like lending to a borrower with an excellent track record and large safety cushion—so AAA-rated securities typically offer lower yields but greater capital preservation compared with lower-rated debt.

ABS financial

Asset-backed securities (ABS) are financial instruments that bundle many individual loans or receivables—such as car loans, credit-card balances or equipment leases—and sell slices of the bundle to investors. Like slicing a loaf of bread into pieces to share, ABS let investors buy a portion of the cash flows from many borrowers, so their credit quality, payment speed and default rates directly affect the income, risk and liquidity investors receive.

Rule 144A regulatory

Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.

Regulation S regulatory

Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.

private placement financial

A private placement is a sale of securities directly to a selected group of investors, typically institutions or accredited investors, instead of through a public offering. It lets a company raise money faster and with fewer regulatory steps; for existing shareholders it matters because the newly issued shares, often sold at a discount, increase the share count and can dilute their ownership.

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ORLANDO, Fla.--(BUSINESS WIRE)-- Hilton Grand Vacations Inc. (NYSE:HGV) announces today the completion of a $300 million securitization of timeshare loans through Hilton Grand Vacations Trust 2026-2 (“HGVT”). Four classes of Notes were issued by the Trust, including approximately $118.8 million of Class A Notes, approximately $98.6 million of Class B Notes, approximately $51.1 million of Class C Notes and approximately $31.5 million of Class D Notes.

The Class A Notes have a coupon rate of 4.83%, the Class B Notes have a coupon rate of 5.10%, the Class C Notes have a coupon rate of 5.54%, and the Class D Notes have a coupon rate of 6.00% for an overall weighted average coupon rate of 5.16% and an overall advance rate of 98%.

“HGVT 2026-2 was an exceptionally strong execution, with broad investor participation and meaningful spread tightening across the capital stack,” said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations. “Peak oversubscription reached nearly 9x, allowing us to achieve the tightest AAA spread in timeshare since January 2022, reflecting the strength and reliability of our ABS platform.”

Proceeds of the issuance, net of fees, will be used to pay down debt and for other general corporate purposes.

BofA Securities served as the Structuring Lead Manager and Joint Bookrunner along with 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. Alston and Bird LLP represented HGV as issuer counsel.

The Notes were offered in a private placement within the U.S. to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”) and outside the U.S. to certain non-U.S. persons in accordance with Regulation S under the Securities Act. The Notes have not been registered under the Securities Act or any state securities laws and therefore may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and applicable state securities laws. 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 Fitch Ratings (Fitch) and Moody’s Investors Service, Inc (Moody’s).

Important Notice

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements convey management’s expectations as to the future of HGV and are based on management’s beliefs, expectations, assumptions and such plans, estimates, projections and other information available to management at the time HGV makes such statements. Forward-looking statements include all statements that are not historical facts, and may be identified by terminology such as the words “outlook,” “believe,” “expect,” “potential,” “goal,” “continues,” “may,” “will,” “should,” “could,” “would,” “seeks,” “approximately,” “projects,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “future,” “guidance,” “target,” or the negative version of these words or other comparable words, although not all forward-looking statements may contain such words. The forward-looking statements contained in this press release include statements regarding the offering, the Share Repurchase and other anticipated future events and expectations that are not historical facts. HGV cautions you that our forward-looking statements involve known and unknown risks, uncertainties and other factors, including those that are beyond HGV’s control, which may cause the actual results, performance or achievements to be materially different from the future results. Any one or more of these risks or uncertainties could adversely impact HGV’s operations, revenue, operating profits and margins, key business operational metrics, financial condition or credit rating. For a more detailed discussion of these factors, see the information under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in HGV’s most recent Annual Report on Form 10-K, which may be supplemented and updated by the risk factors in HGV’s quarterly reports, current reports and other filings HGV makes with the SEC, including HGV’s most recent Quarterly Report on Form 10-Q. HGV’s forward-looking statements speak only as of the date of this communication or as of the date they are made. HGV disclaims any intent or obligation to update any “forward-looking statement” made in this communication to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time.

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 more than 720,000 Club Members. Membership with the Company provides best-in-class programs, exclusive services and maximum flexibility for our Members around the world.

For more information, visit www.corporate.hgv.com. Follow us on Instagram, Facebook, LinkedIn, X (formerly Twitter), Pinterest and YouTube.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260610521382/en/

Investor Contact:
Mark Melnyk
407-613-3327
mark.melnyk@hgv.com

Media Contact:
Lauren George
407-613-8431
lauren.george@hgv.com

Source: Hilton Grand Vacations Inc.