S&P gives Hilton Grand facility BBB-

S&P said it assigned its BBB- issue-level rating and 1 recovery rating to Hilton Grand Vacations Inc.'s new senior secured credit facility, which consists of an $800 million revolving credit facility due in 2023 and a $200 million term loan due in 2023.

The company plans to use the proceeds to refinance its existing revolver and term loan, extend maturities and fund working capital needs.

The new term loan is modestly larger than the existing term loan, which had an outstanding balance of $182 million as of September, S&P noted.

The new revolver commitment is $600 million higher than the existing $200 million revolver.

“Although HGV announced it may use the incremental capacity to complete share repurchases under its new $200 million share repurchase authorization, we assume that HGV will also use a substantial portion of this incremental capacity primarily for inventory spending in some form over the next few years,” the agency said in a news release.

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