Hilton Grand Vacations Prices $900M 6.625% Senior Secured Notes Due 2032
Portfolio Pulse from Benzinga Newsdesk
Hilton Grand Vacations Inc. (NYSE:HGV) has priced a private offering of $900 million in 6.625% senior secured notes due 2032 to finance its proposed acquisition of Bluegreen Vacations Holding Corporation. The notes will mature on January 15, 2032, and the offering is expected to close on January 17, 2024, subject to customary closing conditions. The offering is exempt from the registration requirements of the Securities Act of 1933.
January 11, 2024 | 6:47 am
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Hilton Grand Vacations Inc. has announced a private offering of $900 million in senior secured notes to finance its acquisition of Bluegreen Vacations. The notes have a 6.625% interest rate and are due in 2032.
The announcement of a new debt offering to finance an acquisition is typically neutral to slightly negative in the short term for the stock price, as it increases the company's leverage. However, the impact on HGV's stock price will depend on investor perception of the acquisition's potential for growth and the terms of the debt. Since the acquisition could be viewed positively if it is expected to enhance HGV's earnings in the long run, the score is neutral.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100