By Paul A. Harris
Portland, Ore., June 14 – Hilton Grand Vacations Inc. priced an upsized $500 million issue of 10-year senior notes (B2/B-) at par to yield 4 7/8% in a Monday drive-by, according to a market source.
The yield printed at the tight end of yield talk in the 5% area.
Deutsche Bank Securities Inc. managed the notes sale.
The issuing entities are wholly owned subsidiaries Hilton Grand Vacations Borrower Escrow LLC and Hilton Grand Vacations Borrower Escrow Inc.
The Orlando, Fla.-based vacation company plans to use the proceeds to fund the acquisition of Dakota Holdings Inc.
Pending that use, the proceeds will be escrowed.
| Issuers: | Hilton Grand Vacations Borrower Escrow LLC and Hilton Grand Vacations Borrower Escrow Inc.
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| Amount: | $500 million, increased from $425 million
|
| Maturity: | July 1, 2031
|
| Securities: | Senior notes
|
| Bookrunner: | Deutsche Bank Securities Inc.
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| Coupon: | 4 7/8%
|
| Price: | Par
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| Yield: | 4 7/8%
|
| Call protection: | Five years
|
| Trade date: | June 14
|
| Settlement date: | June 28
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 5% area
|
| Marketing: | Drive-by
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