Wyndham Worldwide priced the senior and subordinate notes from Sierra Timeshare 2014-1 Receivables Funding transaction at significantly tighter spreads than its previous deal.
The deal was upsized to $425 million from $300 million. Deutsche Bank, Credit Suisse and RBS are lead managers on the deal.
The class A notes with a weighted average life of 3.18-years priced at swaps plus 110 basis points and the subordinate. 3.18-years notes priced at swaps plus 145 basis points, according to source familiar with the deal.
By comparison, the issuer’s previous transaction, which priced in November 2013, the class A notes priced 30 basis points wider and the subordinate note priced 45 basis points wider, according to a Bank of America Merrill Lynch report published on Friday. Both of the tranches had a weighted average life of 3.36-years.
This is Wyndham Worldwide’s 24th Sierra transaction, according to a Fitch Ratings presale report. The mix of loans is consistent with prior deals, with Wyndham Vacation loans accounting for approximately 65.3% of the pool.