ORLANDO - Hilton Grand Vacations Inc . (NYSE:HGV), a global timeshare company, has announced the pricing of a $900 million senior secured notes offering due 2032. The offering is connected to the company's proposed acquisition of Bluegreen Vacations (NYSE:BXG) Holding Corporation (BVH), a deal announced on November 6, 2023, with a total consideration of approximately $1.5 billion.
The notes, which will mature on January 15, 2032, are expected to close on January 17, 2024, subject to customary closing conditions. This private offering is exempt from the registration requirements of the Securities Act of 1933.
If the offering closes concurrently with the acquisition, the notes will be issued by Hilton Grand Vacations Borrower LLC and Hilton Grand Vacations Borrower Inc., instead of the escrow subsidiaries initially set up for the transaction. In case the offering does not close alongside the acquisition, the proceeds will be held in escrow until certain conditions are met. Upon completion of the acquisition, the obligations under the notes will be assumed by the surviving issuers and guaranteed by Hilton Grand Vacations Inc. and certain of its subsidiaries.
Hilton Grand Vacations intends to use the net proceeds from the offering to finance the acquisition of BVH, repay certain outstanding indebtedness, and cover related fees and expenses.
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