Diamond Resorts is prepping a $93.56 million timeshare securitization, according to a presale report published Monday by Standard & Poor’s.
The deal, Diamond Resorts Owner Trust 2013-1, consists of two rated tranches; a $88.64 million Class A has been assigned a preliminary ‘A+’ rating and a $4.92 million Class B has been assigned a preliminary ‘A’ rating.
The notes are backed by 8,530 vacation ownership interval loans with an aggregate balance of $98.49 million.
Credit support includes the 10.00% initial overcollateralization and subordination for the Class A notes and 5.00% initial overcollateralization for the Class B notes; an initial reserve account, which will be funded at closing with 1.00% of the collateral amount; and the excess spread of approximately 12.1-12.3% per year, according to the presale report.
The expected closing date is Jan. 23
Credit Suisse is the initial purchaser of the notes.
Diamond Resorts is one of the world's largest vacation ownership interest companies, with a member base of more than 490,000 owners and more than 260 branded and affiliated resorts throughout the Continental U.S., Hawaii, Canada, Mexico, the Caribbean, Europe, Asia, Australia, and Africa.
The firm has completed at least two prior timeshare backed deals; the presale report compares the current transaction to one completed in 2011 backed by 7,468 loans with an aggregate balance of $67.9 million and another completed in 2009 backed by 11,478 loans with an aggregate balance of $123.45 million.