Hilton Grand Vacations Inc. (NYSE:HGV) completed a $400 million term note securitization on December 16, 2025 through the Hilton Grand Vacations Trust 2025‑3EXT. The transaction issued four classes of notes—Class A ($141.2 million), Class B ($146.6 million), Class C ($81.4 million) and Class D ($30.7 million)—with a weighted‑average coupon of 5.07% and an advance rate of 96%.
The proceeds will be applied to pay down existing debt and fund general corporate purposes, further strengthening HGV’s balance sheet and providing additional liquidity for future growth initiatives. This use of proceeds aligns with the company’s broader strategy to optimize its capital structure and unlock trapped value in its timeshare receivables portfolio.
Hilton Grand Vacations has executed a series of securitizations this year, with the August 2025 transaction (HGVT 2025‑2) also raising $400 million at a 4.69% coupon and the June 2025 transaction (HGVT 2025‑1) raising $300 million at a 5.07% coupon. The December 2025 deal is the fourth securitization in 2025 and the third under the HGVT platform, underscoring a consistent approach to financing optimization and a willingness to tap the market when conditions are favorable.
Management emphasized the strategic importance of the transaction. President and CFO Dan Mathewes said, “Completing our fourth transaction of the year and the third under the HGVT platform marks significant progress toward the optimization of our financing business. The efficient execution, coupled with continued strong investor engagement, reaffirms the strength of our business and the power of the HGV brand.” The timing of the deal—just after a Q3 earnings miss—provides a positive signal that the company can still access capital markets and maintain liquidity despite operational challenges.
Fitch Ratings assigned final ratings to the notes issued by Hilton Grand Vacations Trust 2025‑3EXT, noting weaker asset performance and borrower risk but concluding that the credit enhancement was adequate. Analysts maintained a “Market Outperform” rating on HGV, citing the company’s robust timeshare receivables and disciplined debt management as key strengths.
The securitization strengthens HGV’s balance sheet by reducing leverage and improving liquidity, positioning the company to pursue growth initiatives and weather potential market headwinds. The consistent use of securitization this year demonstrates a proactive financing strategy that can enhance shareholder value over the long term.
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