ORLANDO - Marriott Vacations Worldwide Corporation (NYSE: VAC), a leading global vacation company, has successfully completed a securitization of vacation ownership loans totaling $430 million. The transaction involved the issuance of notes by MVW 2024-1 LLC with a blended interest rate of 5.48% and a 98% gross advance rate.
The securitization drew strong investor demand and showcased a 100 basis point interest rate reduction from the company's previous transaction in November 2023, according to Jason Marino, Executive Vice President and Chief Financial Officer. This reflects a positive reception in the financial market for Marriott Vacations' credit.
The offering, which was made to qualified institutional buyers in the United States and international investors, comprised three classes of notes: $284 million of Class A Notes at 5.32% interest, $89 million of Class B Notes at 5.51%, and $57 million of Class C Notes at 6.20%. The notes were backed by approximately $439 million of vacation ownership loans from various timeshare brands under the company.
Marriott Vacations plans to use the net proceeds from the securitization to reduce outstanding credit facility obligations and for other general corporate purposes.
This press release does not serve as an offer to sell or a solicitation of an offer to buy any securities. The notes have not been registered under the Securities Act of 1933 or any state securities laws and may not be offered or sold in the U.S. without registration or an applicable exemption from such registration requirements.
Marriott Vacations Worldwide Corporation operates approximately 120 vacation ownership resorts and has around 700,000 owner families. It also manages an extensive exchange network and membership programs with over 3,200 affiliated resorts worldwide.
The company is known for its high standards in customer service and maintains exclusive relationships with Marriott International (NASDAQ:MAR), Inc. and an affiliate of Hyatt Hotels (NYSE:H) Corporation for the development and marketing of vacation ownership products and services.
Information for this article is based on a press release statement.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.