Hilton Grand starts roadshow for $675 million eight-year notes, initial talk low 5% area

By Paul A. Harris

Portland, Ore., May 17 – Hilton Grand Vacations Inc. started a roadshow on Monday for a $675 million offering of eight-year senior notes (expected ratings B2/B-), according to market sources.

The Rule 144A and Regulation S deal is set to price later in the May 17 week.

Initial guidance is in the low 5% area, a bond trader said.

Deutsche Bank Securities Inc. is leading the deal.

The notes come with three years of call protection.

The issuing entities will be Hilton Grand Vacations Borrower Escrow LLC and Hilton Grand Vacations Borrower Escrow Inc., wholly owned subsidiaries of Hilton Grand Vacations.

The Orlando, Fla.-based timeshare company plans to use the proceeds to help support its acquisition of Diamond Resorts International Inc. and repay Hilton Grand Vacations and Diamond Resorts’ senior notes.

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