Hilton Grand Vacations Enters Into Amendment No. 7 to Credit Agreement for New Term Loans

Hilton Grand Vacations Inc. (NYSE:HGV) announced on October 8, 2024, that it has entered into Amendment No. 7 to its Credit Agreement. The Agreement involves Hilton Grand Vacations Parent LLC, Hilton Grand Vacations Borrower LLC, and several subsidiaries of the Borrower. This amendment pertains to the Credit Agreement dated August 2, 2021.

As part of the agreement, the Borrower incurred $400.0 million of incremental term loans, referred to as the New Term Loans. The funds from these loans, combined with existing cash reserves, were utilized to voluntarily repay Initial Term Loans amounting to $400.0 million, along with accrued and unpaid interest.

These New Term Loans represent a fresh class of term loans under the existing Credit Agreement. They hold an equal footing in terms of payment rights and security privileges alongside the existing Initial Term Loans, Amendment No. 4 Term Loans, and Revolving Credit Facility. Scheduled to mature on January 8, 2028, the New Term Loans do not require amortization before the maturity date.

Interest on the New Term Loans will be calculated based on a margin over either the Base Rate or the Term SOFR rate. The Borrower has the liberty to prepay these loans at any point without incurring a fee, with the exception of standard “breakage” costs related to Term SOFR loans.

In concurrence with the Amendment, the aggregate amount of Letters of Credit allowed under the Credit Agreement was raised from $50.0 million to $150.0 million.

This report is supplemented by the full text of the Amendment filed as Exhibit 10.1 in the Current Report on Form 8-K. Additionally, the creation of Direct Financial Obligations or Off-Balance Sheet Arrangements mentioned in Item 1.01 is referred to in Item 2.03 of the filing.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Hilton Grand Vacations’s 8K filing here.

About Hilton Grand Vacations

Hilton Grand Vacations Inc, a timeshare company, develops, markets, sells, manages, and operates the resorts, plans and ancillary reservation services under the Hilton Grand Vacations brand. It operates through Real Estate Sales and Financing, and Resort Operations and Club Management segments. Real Estate Sales and Financing segment market and sells the VOIs, and source VOIs through fee-for-service agreements with third-party developers; and provides consumer financing and services loans.