Fitch gives Hilton loan, notes BB+

Fitch Ratings said it assigned BB+/RR2 ratings to Hilton Grand Vacations Borrower LLC’s (HGV) upcoming senior secured term loan B and senior secured notes that will be guaranteed by Hilton Grand Vacations, Inc.

The agency also affirmed the companies’ BB issuer default rating, secured revolver and term loan at BB+/RR2, as well as unsecured notes at BB/RR4.

The ratings follow HGV reporting it is buying Bluegreen Vacations Holding Corp. for $1.5 billion, Fitch said.

“HGV plans to issue secured debt to fund the acquisition, which will increase EBITDA leverage slightly above Fitch's downgrade sensitivities. Fitch expects FCF will be used to reduce debt to bring leverage within sensitivities over time. HGV deleveraged rapidly following its acquisition of Diamond Resorts,” the agency said in a press release.

The outlook is stable.

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