Marriott Prices $240M Timeshare ABS

Marriott sold $240 million of bonds backed by timeshare loans in what has otherwise been a quiet week of ABS issuance.

The market has been slow to return to normal following the slowdown last week on the back of the ABS East conference in Miami, Florida. 

MVW Owner Trust 2014-1 sold the 3.19-year bonds rated ‘A+’ / ‘A’ by Standard & Poor’s and Fitch Ratings, respectively, at 90 basis points over Interpolated Swaps curve, according to a person familiar with the deal. The 3.19-year, ‘BBB’/ ‘BBB’ rated class B notes were sold at 135bps.

The class A note were structured with credit enhancement of 14% and a preliminary ‘A’ rating and the class B note had credit enhancement of 4.5% and a preliminary ‘BBB’ rating.  

Credit Suisse, Bank of America Merrill Lynch and RBS are joint lead managers on the deal.

The notes are backed by a pool of fixed-rate timeshare loans originated by Marriott Ownership Resorts, a subsidiary of Marriott Vacations Worldwide Corp. This is MVW’s 16th term securitization.