Westgate Resorts has completed its second timeshare loan securitization of the year.
Westgate Resorts 2015-2 LLC issued $155.9 million of notes placed with 12 investors via a private placement lead managed by Amherst Pierpoint Securities Group and co-managed by Capital One Securities.
The notes have an overall weighted average coupon rate of 3.34%, significantly higher than 2.93% for the sponsor’s previous deal, completed in March. However the sponsor was able to borrow against 92.2% of the value of the collateral, up from 90.6% for the previous transaction.
“We are very pleased with the results under very volatile market conditions,” Tom Dugan, Westgate’s chief financial officer, said in a press release.
“The continued execution of these transactions demonstrates the faith the investment community has in the Westgate business model, its servicing platform, the performance of prior structured transactions and its management team.”
The latest deal consists of two tranches of notes: $127.9 million of class A notes rated ‘A’ by DBRS have a coupon rate of 3.2% and $28 million of class B notes rated ‘BBB’ have a coupon rate of 4.0%.
Over the past three years, Westgate has completed approximately $1.3 billion of timeshare loan securitizations.