Hilton Grand sets $900 million term loan B at SOFR plus 275 bps

By Sara Rosenberg

New York, Jan. 10 – Hilton Grand Vacations Borrower LLC firmed pricing on its $900 million seven-year incremental term loan B (Ba2/BB+) at SOFR plus 275 basis points, the low end of the SOFR plus 275 bps to 300 bps talk, according to a market source.

In addition, the original issue discount on the term loan was changed to 99.75 from 99.5, the source said.

The term loan still has a 0% floor, 101 soft call protection for six months and no CSA.

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 continued to be due at 2 p.m. ET on Wednesday, the source added.

Proceeds are intended to be used with $900 million of senior secured notes 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.

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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