Fee-for-Service Transaction Marks an Industry First
DALLAS, TX (Nov. 25, 2014) — Elara, a Hilton Grand Vacations Club resort, located in Las Vegas, NV, announced that it has completed a term securitization transaction with the issuance of $120 million of asset-backed notes by its affiliate, Elara HGV Timeshare Issuer 2014-A, LLC. The transaction, backed by timeshare loans originated through a fee-for-service arrangement with Hilton Grand Vacations, is the first issuance sponsored by a fee-for-service timeshare owner.
Approximately $107 million of A-rated notes and $13 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 backed by vacation ownership loans and had interest rates of 2.53% and 3.02%, respectively, for an overall weighted average interest rate of 2.58%. All of such 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 opportunity 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, Nevada across from CityCenter. The resort opened to the public in December 2009, and was branded by Hilton Grand Vacations (“HGV”), the timeshare division of Hilton Worldwide, 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 the Hilton Grand Vacations Club, a points-based exchange club which is comprised of over 220,000 members with access to 4,000+ Hilton properties globally. Resort Finance America, headquartered in Orlando, Florida, 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 building value through origination, underwriting, acquisition and improving the performance of operating assets and related investments. Lantern’s asset management platform provides both financial resources and operational expertise to help transform businesses into industry leading enterprises. In addition to Elara, Lantern’s mandates include Bluejack National, Beacon Land Development, Montage Kapalua Bay, Sunrise Lodge, and Resort Finance America. Lantern is headquartered in Dallas, TX.
Contact: Josh Governale
SOURCE Lantern Asset Management