Hilton Grand Vacations Successfully Issues New Term Loan A
Hilton Grand Vacations Inc. (NYSE:HGV) has successfully issued a $400 million Senior Secured Term Loan A, maturing in January 2028, with pricing of SOFR plus 175 basis points. The funds will be used to partially pre-pay the $1.3 billion Term Loan B, which matures in August 2028.
Dan Mathewes, president and CFO of Hilton Grand Vacations, stated that this move will lower interest costs and optimize the company's balance sheet. The issuance is expected to generate nearly $10 million in interest savings over the life of the Term Loan A.
Bank of America served as the lead arranger for the transaction, while Simpson Thacher & Bartlett LLP represented HGV as issuer counsel.
Hilton Grand Vacations Inc. (NYSE:HGV) ha emesso con successo un prestito senior garantito a termine A da 400 milioni di dollari, con scadenza a gennaio 2028, al prezzo di SOFR più 175 punti base. I fondi saranno utilizzati per pre-pagare parzialmente il prestito a termine B da 1,3 miliardi di dollari, che scade ad agosto 2028.
Dan Mathewes, presidente e CFO di Hilton Grand Vacations, ha dichiarato che questa mossa servirà a ridurre i costi degli interessi e a ottimizzare il bilancio dell'azienda. Si prevede che l'emissione genererà quasi 10 milioni di dollari in risparmi sugli interessi nel corso della vita del prestito a termine A.
Bank of America ha svolto il ruolo di arrangiatore principale per la transazione, mentre Simpson Thacher & Bartlett LLP ha rappresentato HGV come consulente legale dell'emittente.
Hilton Grand Vacations Inc. (NYSE:HGV) ha emitido con éxito un préstamo a plazo A garantizado senior de 400 millones de dólares, con vencimiento en enero de 2028, a un precio de SOFR más 175 puntos básicos. Los fondos se utilizarán para pre-pagar parcialmente el préstamo a plazo B de 1.3 mil millones de dólares, que vence en agosto de 2028.
Dan Mathewes, presidente y CFO de Hilton Grand Vacations, declaró que este movimiento reducirá los costos de interés y optimizará el balance de la empresa. Se espera que la emisión genere casi 10 millones de dólares en ahorro de intereses durante la vida del préstamo a plazo A.
Bank of America actuó como el organizador principal de la transacción, mientras que Simpson Thacher & Bartlett LLP representó a HGV como abogado del emisor.
힐튼 그랜드 휴가 주식회사(Hilton Grand Vacations Inc.) (NYSE:HGV)가 4억 달러 규모의 선순위 담보 연간 대출 A를 성공적으로 발행했으며, 만기는 2028년 1월입니다. 이 대출의 가격은 SOFR 플러스 175 베이시스 포인트입니다. 자금은 2028년 8월 만기가 도래하는 13억 달러 규모의 대출 B를 부분적으로 조기 상환하는 데 사용될 것입니다.
힐튼 그랜드 휴가의 회장 겸 CFO인 댄 매튜스(Dan Mathewes)는 이 조치가 이자 비용을 낮추고 회사의 재무 상태를 최적화할 것이라고 밝혔습니다. 이번 발행은 대출 A의 기간 동안 거의 1천만 달러의 이자 절감 효과를 가져올 것으로 예상됩니다.
모건 스탠리가 이번 거래의 주요 주선자 역할을 했으며, 심프슨 타처 앤 바틀렛 LLP(Simpson Thacher & Bartlett LLP)가 발행인 법무를 대표했습니다.
Hilton Grand Vacations Inc. (NYSE:HGV) a réussi à émettre un prêt à terme senior garanti A de 400 millions de dollars, qui arrivera à échéance en janvier 2028, avec un taux de SOFR plus 175 points de base. Les fonds seront utilisés pour prépayer partiellement le prêt à terme B de 1,3 milliard de dollars, qui arrivera à échéance en août 2028.
Dan Mathewes, président et directeur financier de Hilton Grand Vacations, a déclaré que cette mesure réduira les coûts d'intérêt et optimisera le bilan de l'entreprise. L'émission devrait générer près de 10 millions de dollars d'économies d'intérêt au cours de la durée du prêt à terme A.
Bank of America a été le chef de file de la transaction, tandis que Simpson Thacher & Bartlett LLP a représenté HGV en tant que conseiller juridique de l'émetteur.
Hilton Grand Vacations Inc. (NYSE:HGV) hat erfolgreich einen 400-Millionen-Dollar Senior Secured Term Loan A ausgegeben, der im Januar 2028 fällig wird, mit einem Zinssatz von SOFR plus 175 Basispunkten. Die Mittel werden verwendet, um den 1,3-Milliarden-Dollar Term Loan B teilweise vorzeitig zurückzuzahlen, der im August 2028 fällig ist.
Dan Mathewes, Präsident und CFO von Hilton Grand Vacations, erklärte, dass dieser Schritt die Zinskosten senken und die Bilanz des Unternehmens optimieren wird. Es wird erwartet, dass die Emission über die Laufzeit des Term Loan A nahezu 10 Millionen Dollar an Zinsersparnissen generieren wird.
Bank of America fungierte als Hauptarrangeur für die Transaktion, während Simpson Thacher & Bartlett LLP HGV als rechtlichen Berater vertreten hat.
- Successful issuance of $400 million Senior Secured Term Loan A
- Expected to generate nearly $10 million in interest savings
- Lowering of interest costs
- Optimization of company's balance sheet
- None.
Insights
Hilton Grand Vacations' successful issuance of a
The new loan's pricing at SOFR plus
This financial maneuver demonstrates HGV's proactive approach to capital management and its ability to leverage current market conditions to its advantage. The move not only lowers interest costs but also optimizes the balance sheet, potentially improving financial ratios and creating more flexibility for future growth initiatives or shareholder returns.
This refinancing move by Hilton Grand Vacations signals confidence in the company's financial stability and future prospects. In the current economic environment, securing favorable loan terms is indicative of strong lender confidence in HGV's business model and cash flow generation capabilities.
The vacation ownership industry has shown resilience post-pandemic and HGV's ability to optimize its capital structure positions it well against competitors. This financial flexibility could allow the company to capitalize on potential market opportunities, whether through acquisitions, property developments, or enhancing customer experiences.
Investors should view this as a positive sign of management's financial acumen and commitment to creating shareholder value. The
“With impressive execution, we continue to lower our interest costs and optimize our balance sheet, positioning us for the future,” said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations. “This issuance strengthens the company’s balance sheet and generates nearly
Bank of America served as lead arranger and 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/20241004627677/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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