Hilton Grand plans $1.8 billion of debt financing for Bluegreen buy

By Sara Rosenberg

New York, Nov. 7 – Hilton Grand Vacations Inc. has received a commitment for a $900 million seven-year senior secured term loan (Ba2) and a $900 million senior secured bridge facility to fund its acquisition of Bluegreen Vacations, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

BofA Securities Inc., Deutsche Bank Securities Inc., Barclays and JPMorgan Chase Bank provided the financing commitment.

Under the agreement, Bluegreen Vacations is being bought for $75 per share in an all-cash transaction, representing total consideration of about $1.5 billion, inclusive of net debt.

Pro forma leverage is expected to be 3.4x, with plans to return to a targeted leverage range of 2x to 3x within 18 months, a recent company presentation said.

Closing is expected during the first half of 2024, subject to customary conditions and regulatory approvals.

Hilton Grand Vacations is an Orlando, Fla.-based timeshare company. Bluegreen Vacations is a Boca Raton, Fla.-based vacation ownership company

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