Wyndham Worldwide is planning a $250 million timeshare loan securitization, according to a presale report published today by Fitch Ratings.
Credit Suisse is the lead underwriter.
Sierra Timeshare 2013-2 Receivables Funding LLC consists of a $174.1 million senior tranche with a preliminary ‘A’ rating from Fitch; it benefits from credit enhancement of 34.25%. There is also a $47.83 million tranche with a preliminary ‘BBB’ rating and a $28.07 million tranche with a preliminary ‘BB’ rating.
Sierra 2013-2 will be the 22nd U.S. term securitization issued by Wyndham Worldwide that includes receivables from both of its subsidiaries, Wyndham Vacation Resorts and Wyndham Resort Development Corp. Compared with the sponsor’s previous transaction, the latest offering has a lower concentration of receivables from WVRI, 62.6% vs 67.3%, which tend to perform not as well as WRDC receivables. However, Fitch said the improved brand concentration is offset by a slightly negative shift toward borrowers with lower FICO scores.