Westgate Readies $175M Timeshare Notes

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Westgate Resorts is readying $175 million of notes backed by timeshare loans, according to DBRS.

The transaction consists of two classes of notes: $132.5 million of class notes are provisinally rated A and 
$42.5 million of notes provisionally rated BBB.

The notes are baked byof a pool of fixed-rate mortgage loans used to purchase deeded timeshare intervals in the Wesgate system.

The transaction uses a prefunding account which will be approximately 25% of the closing date bond balance. On the closing date, approximately $14.5 million of the amounts in the prefunding account will be used to acquire initial timeshare loans while the balance will be used to acquire the subsequent timeshare loans. The prefunding period will be three months. Prefunded loans will be subject to concentration limits, which will help maintain the consistency of the collateral pool.

The initial overcollateralization of 9.85% will be of the initial pool balance and is expected to build based on available excess spread. All excess spread will be used to turbo the notes.

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