Westgate Resorts has completed a securitization of a pool of approximately $227 million of timeshare loans.
In a statement published Monday, the company said that it placed $215 million of notes with 20 investors. Three classes of notes were issued by the securitization trust, dubbed Westgate Resorts 2014-1 LLC: $127 million of class A notes, rated A’ by KBRS, pay interest of 2.15%; $53 million of class B notes, rated BBB,’ pay 3.25%; and $35 million of class C notes, rated BB,’ pay 5.5%.
The overall weighted average interest rate of the notes was 2.97%. The advance rate for the transaction was 94.5%.
The bonds were sold through Amherst Securities Group and bring the total of notes sold by Westgate via Amherst during the last two and a half years to approximately $1 billion.
The deal is partly prefunded. Approximately $182 million of the loans were contributed on September 19, and Westgate has until December 19 to contribute the remaining portion.
The existing 2014-1 collateral pool contains loans originated between 2002 through 2014, with an average seasoning of approximately 13 months and a weighted average remaining life of 95 months, according to DBRS. The weighted average FICO score of the pool is 693.
