Hilton Grand Vacations Secures $415.3 Million Through Timeshare Loan Deal

Hilton Grand Vacations US43283X1054

Hilton Grand Vacations Inc. has unveiled a significant financial transaction aimed at bolstering its capital position. The timeshare provider announced plans to raise approximately $415.3 million by securitizing a portfolio of its timeshare loans. This move highlights the company's ongoing approach to refining its financial framework and enhancing liquidity.

This capital-raising initiative is part of a consistent corporate strategy. In August 2025, the company completed a similar securitization deal valued at $400 million. At that time, Chief Financial Officer Daniel J. Mathewes noted that such transactions are designed to optimize funding operations and create cash flow for capital returns to shareholders.

The latest deal follows a period of solid operational results. In its October quarterly report, Hilton Grand Vacations reaffirmed its full-year guidance for adjusted EBITDA. The company has also been actively repurchasing its own shares, buying back roughly 1.1 million shares for $47 million through October 23, 2025. Investors are now looking ahead to the publication of Q4 2025 financial results, scheduled for February 2026.

Mechanics of the "2025-3EXT" Transaction

The securitization is structured under the name "Hilton Grand Vacations Trust 2025-3EXT." Through this vehicle, the company is issuing asset-backed securities to investors. The offering is divided into four distinct tranches, labeled Class A through D, with a final maturity date extending to October 2044.

A key feature of the structure is a pre-funding period, set to conclude in June 2026, which allows for the future acquisition of additional loan receivables. To safeguard the credit quality of the offering, an initial reserve fund equivalent to 5.50% of the note volume has been established. Fundamentally, this process converts illiquid timeshare loan assets into immediately available capital.

This transaction underscores Hilton Grand Vacations' methodical use of capital markets to support its business model and strategic objectives.