Hilton Grand Vacations

At the Barclays conference, Hilton Grand Vacations highlighted its transformation from 60 to over 200 properties and an improvement in EBITDA from about $400 million (2018) to roughly $1.2 billion. Management expects lower capital requirements, declining inventory and integration spending, and an EBITDA conversion rate of 55–65%, but sees near-term pressure on sales metrics (VPGs), particularly in Myrtle Beach and Orlando. HGV plans to continue share buybacks, is focusing on selective new-build projects, and expects growth to normalize and cash flows to stabilize from 2027. » More on de.investing.com

Hilton Grand Vacations replaced an existing $849 million term loan maturing in 2028 with a new $850 million term loan maturing in 2033. The interest rate remains at SOFR plus 200 basis points, and net proceeds will be used to fully repay the 2028 loan. The company reports a strong liquidity position with a current ratio of 4.09; total debt stands at $7.4 billion against annual revenue of $4.63 billion. JP Morgan Chase Bank acted as lead arranger; the issuers were legally represented by Alston and Bird and by Nelson Mullins. » More on de.investing.com

Hilton Grand Vacations securitized $300 million of timeshare loans through the Hilton Grand Vacations Trust 2026-2 and issued four note tranches (A: $118.8m; B: $98.6m; C: $51.1m; D: $31.5m). The tranches carry coupons from 4.83% to 6.00%, with a weighted average coupon of 5.16% and a financing rate of 98%. Proceeds will be used to repay debt and for general corporate purposes; the company said the deal was nearly nine times oversubscribed and achieved the tightest AAA spread in the timeshare sector since January 2022. » More on de.investing.com