Hilton Grand Vacations Successfully Reprices Term Loan B

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Hilton Grand Vacations successfully lowers pricing on its Term Loan B, resulting in annual interest savings of over $3 million.

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• Hilton Grand Vacations successfully lowers pricing on its Term Loan B, resulting in annual interest savings of over $3 million.

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ORLANDO, Fla.--(BUSINESS WIRE)-- Hilton Grand Vacations Inc. (NYSE:HGV) announces today the successful re-pricing of its existing $1.3 billion Term Loan B, maturing Aug. 2, 2028. The new pricing will be SOFR plus 275 basis points, down from SOFR plus 300 basis points. Additionally, the interest rate floor for the Term Loan B has been lowered from 50 basis points to 0 basis points.

“Even in light of volatile markets, we were able to successfully lower our pricing on our Term Loan B by 25 basis points reflecting our strong leverage position and ample free cash flow,” said Dan Mathewes, chief financial officer of Hilton Grand Vacations. “The combination of new investors and annual interest savings over $3 million a year further position us to successfully execute on our strategic priorities.”

Proceeds of the issuance, net of fees, were used to reprice the existing Term Loan B due 2028.

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. 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. As one of Hilton’s 22 premier brands, Hilton Grand Vacations has a reputation for delivering a consistently exceptional standard of service, and unforgettable vacation experiences for guests and more than 520,000 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231004127791/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

What is the news about?

The news is about Hilton Grand Vacations successfully re-pricing its existing Term Loan B.

What is the new pricing for the Term Loan B?

The new pricing for the Term Loan B is SOFR plus 275 basis points, down from SOFR plus 300 basis points.

What is the interest rate floor for the Term Loan B?

The interest rate floor for the Term Loan B has been lowered from 50 basis points to 0 basis points.

How much annual interest savings are expected?

The annual interest savings are expected to be over $3 million.

Who were the key players in this transaction?

Bank of America served as the lead arranger and Simpson Thacher & Bartlett LLP represented HGV as issuer counsel.