Wyndham is planning its first timeshare loan securitization of the year, according to a presale report from Fitch Ratings.
The deal, Sierra Timeshare 2013-1 Receivables Funding, consists of two tranches: the $230.78 million Class A has a preliminary ‘A’ rating and the $69.22 million Class B has a preliminary 'BBB' rating.
Deutsche Bank Securities is the lead underwriter.
Wyndham’s latest offering has slightly less credit enhancement that its previous deal, issued in 2012, according to Fitch. The initial hard credit enhancement for the class A and B notes is 32.5% and 11.5%, respectively, compared with 35.0% and 13.5%, for the class A and B notes, respectively, in the 2012-3 transaction.
Both classes in the latest deal benefit from 9.0% overcollateralization, down from 11.0% in 2012-3. Unlike 2012-3, however, 201301 also benefits from a 2.5% letter of credit. Excess spread in the latest deal is 10.44% per annum, down from 10.53% in 2012-3.