Hilton Grand Vacations completes $300 million timeshare loan securitization

ORLANDO - Hilton Grand Vacations Inc. (NYSE:HGV), a vacation ownership company with a market capitalization of $3.6 billion and strong revenue growth of 17.4% in the last twelve months, has completed a $300 million securitization of timeshare loans through Hilton Grand Vacations Trust 2025-1, the company announced Wednesday. According to InvestingPro data, the company maintains healthy liquidity with a current ratio of 3.82.

The securitization consisted of three classes of notes: approximately $166.5 million of Class A Notes with a 4.88% coupon rate, $87 million of Class B Notes at 5.18%, and $46.5 million of Class C Notes at 5.52%. The overall weighted average coupon rate is 5.07% with a 97% advance rate. This new financing adds to the company’s total debt position of $7.03 billion, as reported by InvestingPro, which provides comprehensive financial health analysis through its Pro Research Reports.

According to the company, investor demand was strong, with peak oversubscription reaching approximately 12 times during the marketing process.

"The ability to issue notes at attractive rates in this environment is testament to the strength of the platform and our ability to monetize our financing business to benefit our shareholders," said Dan Mathewes, president and chief financial officer of Hilton Grand Vacations. With EBITDA of $883 million in the last twelve months, the company demonstrates solid operational performance. InvestingPro analysis indicates the company is currently trading at Fair Value, with multiple additional insights available to subscribers.

Net proceeds will be used to pay down debt and for other general corporate purposes.

Wells Fargo Securities served as the Structuring Lead Manager and Joint Bookrunner alongside BofA Securities, Deutsche Bank Securities, Barclays, Goldman Sachs & Co. LLC, and Truist Securities. Several other financial institutions acted as co-managers.

The notes were offered privately within the U.S. to qualified institutional buyers and to certain non-U.S. persons outside the U.S. The notes have not been registered under the Securities Act of 1933.

Certain classes of the transaction were rated by Standard & Poor’s Financial Services LLC and Fitch Ratings.

This information is based on a press release statement from Hilton Grand Vacations.

In other recent news, Hilton Grand Vacations reported its first-quarter 2025 earnings, showing an EPS of $0.09, which was significantly below the expected $0.59. The company’s revenue for the quarter reached $1.15 billion, missing the anticipated $1.25 billion. Despite these earnings misses, strategic initiatives and future growth plans seemed to have positively influenced market sentiment. Goldman Sachs adjusted its price target for Hilton Grand Vacations to $34 from $30, maintaining a Sell rating, while Mizuho Securities raised its target to $70, keeping an Outperform rating. JMP Securities reiterated its Market Outperform rating with a $50 target, reflecting a positive long-term outlook despite some adjustments to future EBITDA estimates. Analysts from Goldman Sachs noted the resilience in the timeshare consumer base and revised their 2025 EBITDA forecast upward due to higher Vacation Package Gross. Meanwhile, Mizuho highlighted opportunities for Hilton Grand Vacations to unlock value from its balance sheet and the successful implementation of an upgrade cycle. These developments indicate a mixed but cautiously optimistic view from analysts on Hilton Grand Vacations’ future performance.

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