Diamond Resorts International has completed the sale of $180 million of bonds backed by timeshare loans.
Diamond Resorts Owner Trust 2015-2 issued two tranches of notes with investment grade ratings from Standard & Poor’s: $159.38 million of AA- rated notes pay 2.99% and $20.62 million of A- rated notes pay 3.54%, the company said in a press release.
The advance rate for this transaction was 96%.
Credit Suisse Securities was the initial purchaser.
The notes are backed by a pool of 5,182 loans with an average balance of $24,878, a weighted average coupon of 14.31%, and original terms ranging from 84 to 120 months, according to S&P. The borrowers have a weighted average FICO score of 731.
The transaction includes a prefunding period during which the issuer may acquire additional collateral using note proceeds that it deposited at closing into the prefunding account (approximately $33.6 million).
This is Diamond Resorts’ second securitization of the year; in July it sold $170 million of bonds at an advance rate of 96% and a weighted average interest rate of 2.76%. Since 2009, it has issued approximately $1.2 billion.
Diamond Resorts is one of the world's largest vacation ownership interest companies with a member base of more than 515,000 owners and more than 300 branded and affiliated resorts throughout the Continental U.S., Hawaii, Canada, Mexico, the Caribbean, Central and South America, Europe, Asia, Australia, and Africa.