Hilton Grand Vacations upsizes with $1 billion five-year revolver

By Wendy Van Sickle

Columbus, Ohio, Dec. 20 – Hilton Grand Vacations Inc. amended its credit agreement on Dec. 16 to add $1 billion of revolving commitments that were used to repay the borrower’s $800 million credit agreement dated Dec. 28, 2016, which was terminated, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent for both the old and the new credit agreements. The credit agreement that was replaced would have matured on Nov. 28, 2023.

The new revolver will bear interest at Libor plus a margin ranging from 175 basis points to 225 bps, based on the consolidated first-lien net leverage ratio, with a 0% Libor floor. There is a commitment fee that ranges from 25 bps to 35 bps, also based on consolidated first-lien net leverage ratio.

The new revolver matures on Dec. 16, 2026.

BofA Securities, Inc., Deutsche Bank Securities Inc., Barclays Bank plc, Credit Suisse Loan Funding, LLC, JPMorgan Chase Bank, NA, Goldman Sachs Bank USA and MUFG Bank, Ltd. are the joint bookrunners.

Wells Fargo Securities, LLC, Citizens Bank, NA, Fifth Third Bank, NA, Regions Capital Markets and Mizuho Bank are the co-managers.

At closing, $699 million remained available under the revolver.

“This new credit facility demonstrates the continued optimization of our capital structure following the successful acquisition of Diamond Resorts,” said Dan Mathewes, senior executive vice president and chief financial officer of Hilton Grand Vacations, in a preset release. “Its larger capacity and improved pricing spreads will provide the scale and flexibility to execute HGV’s diversified capital deployment strategy, enabling us to further our position as the premier timeshare network for our members and guests.”

Proceeds will be used for working capital and general corporate purposes.

Hilton Grand Vacations is an Orlando, Fla.-based timeshare company. Diamond Resorts is a timeshare operator.

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