Fixed-rate timeshare loans will provide the revenue to secure $240 million in notes from the Hilton Grand Vacations Trust, 2024-1B, as demand for leisure travel remains resilient and operators in the timeshare segment expect tour activity to return to pre-COVID-19 levels.
BofA Securities is the lead underwriter on the deal, according to ratings analysts at Fitch Ratings. Meanwhile BofA and SunTrust Robinson Humphrey Capital Markets are managers on the transaction, which should close around April 25, according to the Asset Securitization Report's deal database.
The deal will issue notes through four tranches of class A, B, C and D notes, all of which have a legal final maturity date of September 2039, according to ratings analysts at Fitch Ratings. The notes from this issuance have initial credit enhancement levels of 66.75%, 44.75%, 27.50% and 14.50% on the A, B, C and D notes, respectively.
For pricing talk, all of the notes are expected to price over the three-month interpolated yield curve A notes could fall between 43 and 45 basis points over the
Bluegreen Vacation originated the loans and Fitch expressed confidence in its record of good performance as servicer. Computershare Trust is on the deal as backup servicer, as well as the indenture trustee, according to Fitch.
The number of loans in the pool amounts to 10,672, Fitch said. The loans have an average balance of $23,563, and on a weighted average (WA) basis the loans have an original term of 120 months, with 111 months remaining. Also on a WA basis the loans have a coupon of 14.5%, and an original FICO score of 741.
Florida, North Carolina, Texas, Georgia and California account for 12.3%, 7.2%, 6.5%, 5.4% and 5.3%, respectively.
Fitch assigns ratings of AAA, A, BBB and BB- to the A, B, C and D, respectively. S&P meanwhile, assigns AAA, A and BBB to the A, B and C notes, respectively, but did not rate the notes.
