Wyndham Worldwide Corporation announced that it has completed two term securitization transactions involving the issuance of $350 million of investment-grade asset-backed notes.
Sierra Timeshare 2009-2 Receivables Funding LLC issued $175 million of triple-A rated vacation ownership loan backed notes, which have an advance rate of 55% and a coupon of 4.52%. Sierra Timeshare 2009-3 Receivables Funding LLC issued $175 million of single-A rated vacation ownership loan backed notes, which have an advance rate of 70% and a coupon of 7.62%.
"We are pleased with the execution of these transactions, which reflect the quality of the underlying vacation ownership receivables and our strong history in the asset-backed market." said Tom Conforti, chief financial officer, Wyndham Worldwide. "We are especially encouraged that the terms of these transactions suggest a steadily improving asset-backed securities market, evidenced by significantly better pricing."
Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. Wyndham Hotel Group encompasses over 7,000 franchised hotels and approximately 590,200 hotel rooms worldwide. Group RCI offers its 3.8 million members access to more than 73,000 vacation properties located in approximately 100 countries.
Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of over 150 vacation ownership resorts serving over 830,000 owners throughout North America, the Caribbean and the South Pacific.