Wyndham Worldwide plans to issue a $300 million securitization backed by timeshare loans.
RBS Securities is lead underwriter on the deal dubbed Sierra Timeshare 2013-3. Fitch Ratings has assigned preliminary ratings of ‘A’ to the transaction’s class A notes and ‘BBB’ ratings to the class B notes.
Credit enhancement for the class A notes is expected to be 34.25% and 14.50% for the class B notes.
The notes are backed by a pool of fixed-rate timeshare loans originated by Wyndham Vacation Resorts and Wyndham Resort Development. Both are wholly owned subsidiaries of Wyndham Worldwide.
The weighted average FICO score of the pool is 716, according to the presale report. It keeps in line with the issuer’s previous transactions issuer this year.
The weighted average FICO score of the pool is 716, according to the presale report. It keeps in line with the issuer’s previous transactions issuer this year.
However 66.10% of pool consists of Wyndham Vacation Resorts originated loans, up from 62.58% in the 2013-2 transaction. The remaining 33.90% of the pool is made up of Wyndham Resort Development originated loans. According to the presale, Wyndham Resort Development loans tend to perform better than Wyndham Vacation Resorts loans.
“Wyndham Worldwide;s delinquency and default performance exhibited notable increases in the 2007-2008 vintages,” according to Fitch. “While most recent vinatges are displaying improved performances,… the improvement is not evident under the Wyndham Vacation Resorts platform.”
