©Reuters.
ORLANDO – Marriott Vacations Worldwide Corporation (NYSE:VAC), one of the world's leading vacation companies, has successfully completed the securitization of vacation ownership loans totaling $430 million. The transaction included the issuance of notes by MVW 2024-1 LLC at a blended interest rate of 5.48% and a gross prepayment rate of 98%.
Jason Marino, executive vice president and chief financial officer, said the securitization attracted strong investor demand and resulted in a 100 basis point interest rate reduction from the previous transaction in November 2023. This reflects the positive reputation of Marriott Vacations in the financial markets.
The offering, made to qualified U.S. institutional investors and international investors, consists of $284 million in Class A notes bearing an interest rate of 5.32%, $89 million in Class B notes bearing an interest rate of 5.51%, and $57 million in Class B notes. It consisted of three classes of bonds: C note is 6.20%. The notes were backed by approximately $439 million in vacation ownership loans from the company's various timeshare brands.
Marriott Vacations intends to use the net proceeds from the securitization to reduce outstanding credit facility debt and for other general corporate purposes.
This press release does not operate as an offer to sell or a solicitation of an offer to buy any securities. This note has not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the United States without registration or an applicable exemption from such registration requirements.
Marriott Vacations Worldwide Corporation operates approximately 120 vacation ownership resorts with approximately 700,000 owner families. He also manages an extensive exchange network and membership program with his more than 3,200 affiliated resorts around the world.
The company is known for its high standards of customer service and has an exclusive partnership with affiliates of Marriott International (NASDAQ:), Inc. and Hyatt Hotels (NYSE:) Corporation for the development and marketing of vacation ownership products and services. We maintain a strong relationship.
The information in this article is based on the press release.
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