Hilton Grand Vacations Refinances Credit Facility and Term Loans
Hilton Grand Vacations (NYSE:HGV) has successfully refinanced its credit facilities and term loans, achieving more favorable terms and extended maturities. The company's Revolving Credit Facility has been recast with reduced pricing spreads, expanded covenants, and extended maturity to January 2030.
Key refinancing details include:
- Term Loan A repriced to SOFR plus 165 basis points (down from 175)
- $828M Term Loan B (2028) repriced to SOFR plus 200 basis points (down from 250)
- $839M Term Loan B (2031) repriced to SOFR plus 200 basis points (down from 225)
The company expects these changes, along with full realization of run-rate synergies and declining integration spend over the next 24 months, to enhance its ability to execute strategic initiatives and expand vacation ownership offerings.
Hilton Grand Vacations (NYSE:HGV) ha rifinanziato con successo le proprie linee di credito e prestiti a termine, ottenendo condizioni più favorevoli e scadenze estese. La linea di credito revolving dell'azienda è stata ristrutturata con un abbassamento degli spread sui prezzi, covenant ampliati e una scadenza prolungata fino a gennaio 2030.
I principali dettagli del rifinanziamento includono:
- Prestito a termine A riprezzato a SOFR più 165 punti base (in calo rispetto a 175)
- Prestito a termine B di 828 milioni di dollari (2028) riprezzato a SOFR più 200 punti base (in calo rispetto a 250)
- Prestito a termine B di 839 milioni di dollari (2031) riprezzato a SOFR più 200 punti base (in calo rispetto a 225)
L'azienda si aspetta che queste modifiche, insieme alla piena realizzazione delle sinergie continuative e alla riduzione della spesa per integrazione nei prossimi 24 mesi, miglioreranno la sua capacità di portare avanti iniziative strategiche e ampliare le offerte di proprietà per le vacanze.
Hilton Grand Vacations (NYSE:HGV) ha refinanciado con éxito sus líneas de crédito y préstamos a plazos, logrando condiciones más favorables y vencimientos extendidos. La línea de crédito revolvente de la compañía ha sido reestructurada con márgenes de precios reducidos, convenios ampliados y un vencimiento extendido hasta enero de 2030.
Los detalles clave del refinanciamiento incluyen:
- Préstamo a plazo A revaluado a SOFR más 165 puntos básicos (bajando de 175)
- Préstamo a plazo B de 828 millones de dólares (2028) revaluado a SOFR más 200 puntos básicos (bajando de 250)
- Préstamo a plazo B de 839 millones de dólares (2031) revaluado a SOFR más 200 puntos básicos (bajando de 225)
La compañía espera que estos cambios, junto con la plena realización de sinergias operativas y la disminución del gasto en integración en los próximos 24 meses, mejoren su capacidad para llevar a cabo iniciativas estratégicas y ampliar las ofertas de propiedad vacacional.
힐튼 그랜드 바케이션스 (NYSE:HGV)는 신용 시설과 기간 대출을 성공적으로 재융자하여 보다 유리한 조건과 연장된 만기를 달성했습니다. 회사의 회전 신용 시설은 가격 스프레드가 줄어들고, 약정이 확대되며, 만기가 2030년 1월까지 연장되는 방식으로 재편성되었습니다.
주요 재융자 세부 사항은 다음과 같습니다:
- 대출 A가 SOFR 플러스 165bp로 재가격이 책정됨 (175에서 하락)
- 828억 달러의 대출 B (2028) 재가격이 SOFR 플러스 200bp로 책정됨 (250에서 하락)
- 839억 달러의 대출 B (2031) 재가격이 SOFR 플러스 200bp로 책정됨 (225에서 하락)
회사는 이러한 변화와 함께 향후 24개월 동안 운영 시너지의 완전 실현 및 통합 비용 감소가 이루어짐에 따라 전략적 이니셔티브를 실행하고 휴가 소유권을 확장할 수 있는 능력이 향상될 것으로 기대하고 있습니다.
Hilton Grand Vacations (NYSE:HGV) a réussi à refinancer ses facilités de crédit et prêts à terme, atteignant des conditions plus favorables et des échéances prolongées. La facilité de crédit renouvelable de l'entreprise a été restructurée avec des marges de prix réduites, des engagements élargis et une échéance prolongée jusqu'en janvier 2030.
Les principaux détails du refinancement incluent:
- Prêt à terme A revalorisé à SOFR plus 165 points de base (en baisse par rapport à 175)
- Prêt à terme B de 828 millions de dollars (2028) revalorisé à SOFR plus 200 points de base (en baisse par rapport à 250)
- Prêt à terme B de 839 millions de dollars (2031) revalorisé à SOFR plus 200 points de base (en baisse par rapport à 225)
L'entreprise s'attend à ce que ces changements, ainsi qu'une pleine réalisation des synergies continues et une diminution des dépenses d'intégration au cours des 24 prochains mois, améliorent sa capacité à mettre en œuvre des initiatives stratégiques et à élargir ses offres de propriété de vacances.
Hilton Grand Vacations (NYSE:HGV) hat erfolgreich seine Kreditfazilitäten und Terminkredite umfinanziert und dabei günstigere Konditionen sowie längere Laufzeiten erreicht. Die revolvierende Kreditfazilität des Unternehmens wurde mit reduzierten Preisaufschlägen, erweiterten Vertragsbedingungen und einer verlängerten Laufzeit bis Januar 2030 neu gestaltet.
Die wichtigsten Einzelheiten der Umfinanzierung umfassen:
- Terminkredit A umgewertet auf SOFR plus 165 Basispunkte (von 175 gesenkt)
- Terminkredit B von 828 Millionen US-Dollar (2028) umgewertet auf SOFR plus 200 Basispunkte (von 250 gesenkt)
- Terminkredit B von 839 Millionen US-Dollar (2031) umgewertet auf SOFR plus 200 Basispunkte (von 225 gesenkt)
Das Unternehmen erwartet, dass diese Änderungen zusammen mit der vollständigen Realisierung von laufenden Synergien und sinkenden Integrationsausgaben in den nächsten 24 Monaten seine Fähigkeit verbessern werden, strategische Initiativen umzusetzen und die Angebote im Bereich Urlaubseigentum zu erweitern.
- Secured lower interest rates across all loan facilities
- Extended Revolving Credit Facility maturity to January 2030
- Expanded covenants and reset incurrence baskets
- Expected reduction in integration spending over next 24 months
- Maintains substantial debt load with $1.67B in term loans
Insights
This comprehensive debt refinancing package represents a significant financial engineering achievement for HGV, showcasing both market confidence in the company's creditworthiness and astute treasury management. The transaction encompasses three key improvements:
1. Cost Reduction: The repricing across facilities yields substantial savings - the Term Loan B facilities alone, totaling
2. Enhanced Financial Flexibility: The expanded covenants and reset incurrence baskets provide greater operational flexibility, particularly valuable as the company continues integrating past acquisitions and pursuing growth initiatives. The extension of the Revolver's maturity to 2030 significantly improves the debt maturity profile.
3. Strategic Timing: This refinancing coincides with the company's projection of declining integration expenses and full realization of synergies over the next 24 months, creating a powerful combination of reduced interest expense and improved operational efficiency.
The successful execution of this refinancing, particularly securing better terms in the current interest rate environment, indicates strong lender confidence in HGV's business model and financial trajectory. The timing aligns perfectly with the company's strategic focus on expanding its vacation ownership offerings, providing both cost savings and enhanced financial flexibility to support growth initiatives.
The
“We’re extremely pleased with the successful repricing and maturity extension of our revolver and other debt,” said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations. “These initiatives demonstrate the continued optimization of our capital structure. Combined with expected full realization of run-rate synergies and declining integration spend over the next 24 months, these efforts put the company in an ideal position to execute on its strategic initiatives and broaden vacation ownership offerings and experiences for our members and guests.”
Wells Fargo served as lead arranger for the Revolving Credit Facility renewal, and Deutsche Bank served as lead arranger for the Term Loan B re-pricings. Simpson Thacher & Bartlett LLP represented HGV as issuer counsel.
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 related to HGV’s revenues, earnings, taxes, cash flow and related financial and operating measures, and expectations with respect to future operating, financial and business performance 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. 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
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/20250203429521/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.
FAQ
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