Hilton Grand launches $900 million term loan at SOFR plus 275-300 bps

By Sara Rosenberg

New York, Jan. 4 – Hilton Grand Vacations Borrower LLC launched on Thursday its $900 million seven-year incremental term loan B (Ba2/BB+) with price talk of SOFR plus 275 basis points to 300 bps with a 0% floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months.

BofA Securities Inc., Deutsche Bank Securities Inc., Barclays, JPMorgan Chase Bank, MUFG and Goldman Sachs Bank USA are the arrangers on the deal. Citizens, Regions, Truist Securities, CIBC, Fifth Third and R. Seelaus are co-managers.

Commitments are due at noon ET on Jan. 11, the source added.

Proceeds are intended to be used with $900 million of other new senior secured debt to fund the acquisition of Bluegreen Vacations Holding Corp. for $75 per share in an all-cash transaction, representing total consideration of about $1.5 billion, inclusive of net debt.

Pro forma net secured leverage is expected to be 2.1x and total net leverage is expected to be 3.4x, excluding non-recourse securitized debt, based on LTM Sept. 30, 2023 pro forma adjusted EBITDA attributable to stockholders of $1.249 billion.

Closing is anticipated during the first half of this year, subject to customary conditions and regulatory approvals.

The company has an existing $1.274 billion term loan B due Aug. 2, 2028 that is priced at SOFR+CSA plus 275 bps.

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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