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Marriott Vacations completes privately placed timeshare ABS

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Marriott Vacations Worldwide (NYSE: VAC) announced it has completed a privately placed a securitization of $90 million in timeshare loans, as well as the establishment of a new larger warehouse lending facility.

According to a press release, the loans “primarily” consist of Asia-Pacific and other loans “that would not be included in the [c]ompany’s typical securitization transactions.”

The unrated transaction involved $65 million in notes purchased by an undisclosed investor at a coupon of 4.42%, Marriott Vacations’ release stated.

The new $350 million warehouse line replaces the previous facility that was capped at $250 million, according to Orlando, Fla.-based Marriott Vacations. Marriott Vacations has a corporate issuer rating of BB from S&P Global Ratings.

The new facility will expand Marriott Vacation’s funding of loans “previously precluded under its prior warehouse facility to include loans originated by its acquired Sheraton Vacation Club, Westin Vacation Club, and Hyatt Resident Club brands,” in addition to loans originated under the Marriott Vacation Club and The Ritz-Carlton Destination Club brands, the release stated.

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Vacation timeshare ABS