Hilton Grand Vacations announced the completion of a $300 million securitization of timeshare loans through Hilton Grand Vacations Trust 2026-2 (HGVT 2026-2).
The transaction involved the issuance of four classes of notes, including approximately $118.8 million of Class A Notes, $98.6 million of Class B Notes, $51.1 million of Class C Notes, and $31.5 million of Class D Notes.
The Class A Notes carry a coupon rate of 4.83%, while the Class B, C, and D Notes have coupon rates of 5.10%, 5.54%, and 6.00%, respectively. The transaction achieved an overall weighted average coupon rate of 5.16% and an advance rate of 98%.
According to the company, proceeds from the offering, net of fees, will be used to reduce debt and for general corporate purposes.
BofA Securities served as structuring lead manager and joint bookrunner alongside Barclays, Deutsche Bank Securities, Truist Securities, and Wells Fargo Securities. Academy Securities, BMO Capital Markets, CIBC Capital Markets, Citizens Capital Markets, Goldman Sachs & Co., HSBC, MUFG, Regions Securities, and Santander US Capital Markets acted as co-managers. Alston & Bird served as issuer counsel.
The notes were sold through a private placement to qualified institutional buyers in the United States under Rule 144A and to certain non-U.S. investors pursuant to Regulation S. Certain classes of the transaction received ratings from Fitch Ratings and Moody’s Investors Service.
Headquartered in Orlando, Florida, Hilton Grand Vacations is the exclusive vacation ownership partner of Hilton. The company develops, markets, and operates vacation ownership resorts in destinations around the world and serves more than 720,000 club members.
KEY QUOTES:
“HGVT 2026-2 was an exceptionally strong execution, with broad investor participation and meaningful spread tightening across the capital stack. Peak oversubscription reached nearly 9x, allowing us to achieve the tightest AAA spread in timeshare since January 2022, reflecting the strength and reliability of our ABS platform.”
Dan Mathewes, President And Chief Financial Officer, Hilton Grand Vacations
