| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers H > Headlines for Hilton Grand Vacations Inc. > News item |
Hilton Grand launches $1.3 billion term B at Libor plus 300-325 bps
By Sara Rosenberg
New York, May 10 – Hilton Grand Vacations launched on Monday its $1.3 billion seven-year term loan B (BB) with price talk of Libor plus 300 basis points to 325 bps with a 0.5% Libor floor and an original issue discount of 99 to 99.5, according to a market source.
The term loan has 101 soft call protection for six months.
BofA Securities Inc., Deutsche Bank Securities Inc., Barclays, Credit Suisse Securities (USA) LLC, JPMorgan Chase Bank, Goldman Sachs Bank USA and MUFG are the lead arrangers on the deal.
Commitments are due at noon ET on May 20, the source added.
Proceeds will be used with $675 million of senior notes to refinance debt in connection with the acquisition of Diamond Resorts International Inc., 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.
Pro forma for the transaction, secured and total leverage will be 1.9x and 3.3x, respectively, excluding non-recourse securitized debt and based on fiscal year 2019 pro forma adjusted EBITDA of $885 million.
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.