By Paul A. Harris
Portland, Ore., May 20 – Hilton Grand Vacations Inc. priced an upsized $850 million issue of eight-year senior notes (B2/B-) at par to yield 5% on Thursday, according to market sources.
The issue size increased from $675 million.
The yield printed at the tight end of the 5% to 5¼% yield talk. Initial guidance was in the low 5% area.
The deal was 2½-times oversubscribed at the upsized amount, according to a trader, who added that $175 million of orders were withdrawn when pricing fell below 5 1/8%.
Deutsche Bank Securities Inc. was the lead.
The issuers were Hilton Grand Vacations Borrower Escrow LLC and Hilton Grand Vacations Borrower Escrow Inc.
The Orlando, Fla.-based timeshare company plans to use the proceeds to help support its acquisition of Diamond Resorts International Inc. and repay Hilton Grand Vacations and Diamond Resorts’ senior notes.
| Issuers: | Hilton Grand Vacations Borrower Escrow LLC and Hilton Grand Vacations Borrower Escrow Inc.
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| Amount: | $850 million, increased from $675 million
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| Tenor: | Eight years
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| Securities: | Senior notes
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| Lead: | Deutsche Bank Securities Inc.
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| Coupon: | 5%
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| Price: | Par
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| Yield: | 5%
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| Call protection: | Three years
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| Trade date: | May 20
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| Ratings: | Moody's: B2
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| S&P: B-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 5% to 5¼%
|
| Marketing: | Roadshow
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