Hilton Grand Vacations to sell $675 million senior notes backing Diamond Resorts acquisition

By Paul A. Harris and Sara Rosenberg

Portland, Ore., May 7 – Hilton Grand Vacations Inc. plans to sell $675 million of senior notes to help support its acquisition of Diamond Resorts International Inc., according to a market source, who added that Deutsche Bank Securities Inc. will lead the deal.

Financing also includes a $1.3 billion seven-year term loan via BofA, Deutsche Bank, Barclays, Credit Suisse, JPMorgan, Goldman Sachs and MUFG, set to kick off on a Monday lender call.

Proceeds will be used to refinance existing debt in connection with the acquisition, including senior notes at Hilton Grand Vacations and notes at Diamond Resorts.

Under the agreement, Diamond Resorts is being purchased from Apollo Global Management Inc. and Reverence Capital Partners for 34.5 million shares of Hilton Grand Vacations common stock. The transaction is valued at $1.4 billion.

Upon closing, existing Hilton Grand Vacations shareholders will own about 72% of the combined company and the Apollo Funds will own around 28% of the combined company.

Closing is targeted for the summer, subject to customary conditions, regulatory approvals and shareholder approval.

Hilton Grand Vacations is an Orlando, Fla.-based timeshare company. Diamond Resorts is a timeshare operator.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.