Elara, a Hilton Grand Vacations Club resort, located in Las Vegas, Nev., announces its completion of a term securitization transaction with the issuance of $165 million of asset-backed notes by its affiliate, Elara HGV Timeshare Issuer 2016-A, LLC. The transaction, backed by timeshare loans originated through a fee-for-service arrangement with Hilton Grand Vacations, represents the second issuance sponsored by a fee-for-service timeshare owner, following Elara’s first transaction for $120 million in November 2014.
Approximately $148 million of A-rated notes and $17 million of BBB-rated notes were offered in a private placement within the United States to qualified institutional buyers pursuant to Rule 144A and outside the United States in accordance with Regulation S under the Securities Act of 1933, as amended. The notes were offered by Deutsche Bank Securities Inc. as lead structuring agent and Barclays Capital Inc. as joint book runner. Capital One Securities, Inc. acted as co-manager. The notes were backed by vacation ownership loans with interest rates of 2.75% and 3.25%, respectively, for an overall weighted average interest rate of 2.80%. All of these securities having been sold; this announcement of their sale appears as a matter of record only.
Lantern Asset Management provides asset management services for Elara and facilitated this unique transaction fortifying the platform for subsequent securitizations of fee-for-service and capital-light ventures.
About Elara, a Hilton Grand Vacations Club Resort
Elara, a Hilton Grand Vacations Club resort, is a 52-story, 1,201-key timeshare resort located center-strip in Las Vegas, Nev. The resort opened to the public in December 2009 and was branded by Hilton Grand Vacations (“HGV”), the timeshare division of Hilton, in March 2012. Elara receives a full suite of services from HGV, including day-to-day property management, sales and marketing, as well as servicing and collections related to newly originated consumer timeshare loans. Elara is a member of Hilton Grand Vacations Club, a points-based exchange club that is comprised of over 250,000 members with access to more than 4,600 Hilton properties globally. Resort Finance America, headquartered in Orlando, Fla., owns a controlling interest in Elara and is a portfolio company of Centerbridge Partners, L.P. Resort Finance America makes debt and equity investments across the timeshare industry.
About Lantern Asset Management
Lantern Asset Management is a full-service asset management firm, an affiliate of Lantern Capital Partners, a middle-market private equity firm that drives value by helping portfolio companies solve operational, liquidity and process issues. Lantern’s extensive experience includes corporate restructurings, operational turnarounds, acquisition and management of complex operating assets and businesses, and structuring and providing financing. In addition to Elara, Lantern Asset Management’s mandates include Bluejack National, Montage Kapalua Bay, Sunrise Lodge, Hyatt Centric Park City, Bright’s Creek, and Resort Finance America. Lantern is headquartered in Dallas, TX. For more information about Lantern, visit www.lanternam.com.