By Paul A. Harris
Portland, Ore., Jan. 10 – Hilton Grand Vacations Inc. priced a $900 million issue of Hilton Grand Vacations Borrower Escrow LLC eight-year senior secured notes (Ba2/BB+/BB+) at par to yield 6 5/8% on Wednesday, according to market sources.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the 7% area.
The deal was heard to be playing to $2.4 billion of demand at 6¾%, a trader said.
It priced on accelerated timing; when it was announced earlier in the week Hilton Grand’s secured notes offering was scheduled to remain in the market until Thursday.
Bookrunners were Deutsche Bank Securities Inc., BofA Securities Inc., Barclays, J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and MUFG Securities Americas Inc.
The Orlando, Fla.-based timeshare company plans to use the proceeds plus a $900 million term loan B to fund its acquisition of Bluegreen Vacations Holding Corp., a Boca Raton, Fla.-based vacation ownership company.
| Issuer: | Hilton Grand Vacations Borrower Escrow, LLC
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| Amount: | $900 million
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| Issue: | Senior secured notes
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| Maturity: | Jan. 15, 2032
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| Bookrunners: | Deutsche Bank Securities Inc., BofA Securities Inc., Barclays, J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and MUFG Securities Americas Inc.
|
| Coupon: | 6 5/8%
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| Price: | Par
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| Yield: | 6 5/8%
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| First call: | Jan. 15, 2027 at 103.313
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| Trade date: | Jan. 10
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| Settlement date: | Jan. 17
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| Ratings; | Moody’s: Ba2
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| S&P: BB+
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| Fitch: BB+
|
| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 6¾% area
|
| Marketing: | Roadshow
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