By Paul A. Harris
Portland, Ore., Nov. 18 – Hilton Grand Vacations Inc. priced a $300 million issue of eight-year senior notes (Ba3/BB) at par to yield 6 1/8% on Friday, according to a syndicate source.
The yield printed 12.5 bps below the tight end of the 6¼% to 6½% yield talk. Initial guidance was in the mid 6% area.
Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., Barclays, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC were the joint bookrunners.
The deal came in conjunction with Hilton Worldwide Holdings Inc.'s spinoff of its timeshare division, Hilton Grand Vacations. The new entity, Park Hotels & Resorts, will be an independent, publicly traded company.
Hilton Grand Vacations will receive no proceeds, according to the syndicate source. Park Hotels & Resorts, the selling security holders, will enter into a debt-for-debt exchange agreement in which the security holders will exchange Park debt for the new notes, and will then sell the new notes to the initial purchasers for cash.
Hilton Grand Vacations is an Orlando, Fla.-based developer, marketer and operator of vacation ownership resorts in select vacation destinations.
| Issuer: | Hilton Grand Vacations Borrower LLC
|
| Amount: | $300 million
|
| Maturity: | Dec. 1, 2024
|
| Securities: | Senior notes
|
| Bookrunners: | Goldman Sachs & Co., BofA Merrill Lynch, Deutsche Bank Securities Inc., Barclays, J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities LLC
|
| Co-managers: | MUFG, U.S. Bancorp Investments Inc.
|
| Coupon: | 6 1/8%
|
| Price: | Par
|
| Yield: | 6 1/8%
|
| Call: | Make-whole call at Treasuries plus 50 bps until Dec. 1, 2019, then callable at 103.063
|
| Trade date: | Nov. 18
|
| Settlement date: | Nov. 29
|
| Ratings: | Moody's: Ba3
|
| S&P: BB
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Roadshow
|
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