ORLANDO, Fla., May 20, 2021 /PRNewswire/ -- Marriott Vacations
Worldwide Corporation (NYSE: VAC) ("MVW" or the "Company")
announced today the completion of its first timeshare receivable
securitization of 2021, offered pursuant to Rule 144A and outside
the United States in accordance
with Regulation S under the Securities Act of 1933, as amended.
$425 million of notes (the "Notes")
were issued in the transaction, backed by a pool of approximately
$434 million of vacation ownership
loans from all of the Company's timeshare brands, including loans
acquired with the recent Welk acquisition. The overall weighted
average interest rate of the Notes is 1.52 percent and the
transaction has a gross advance rate of 98 percent.
"The strong investor demand for this offering resulted in the
lowest interest rate ever achieved by a MVW 144A securitization and
is further evidence of the strength of our leisure-focused business
model and growth strategies," said John
Geller, president & chief financial officer.
The Notes were issued by MVW 2021-1W LLC (the "LLC") in four
classes: approximately $207 million
of Class A Notes, approximately $107
million of Class B Notes, approximately $80 million of Class C Notes, and approximately
$31 million of Class D Notes. The
Class A Notes have an interest rate of 1.14 percent, the Class B
Notes have an interest rate of 1.44 percent, the Class C Notes have
an interest rate of 1.94 percent, and the Class D Notes have an
interest rate of 3.17 percent.
Approximately $325 million of the
loans were purchased on May 20, 2021,
by the LLC, and all or a portion of the remaining loans may be
purchased by the LLC prior to October 30,
2021. Of the $425 million in
proceeds from the transaction, $106
million will be held by the LLC until it purchases all or a
portion of the remaining loans or, if not used for that purpose,
returned to the investors. In addition, approximately $8 million was used to pay transaction expenses
and fund required reserves, and the remaining $311 million will be used for general corporate
purposes. In connection with the 2021-1W securitization, the
Company will redeem the MVW 2014-1, MVW 2015-1, Welk 2013-A
and Welk 2015-A transactions for approximately $72 million with the majority of this paper to be
purchased by the LLC.
This press release does not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of
these securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of such jurisdiction. The
Notes have not been registered under the Securities Act of 1933, as
amended, or any state securities law. Unless so registered, the
Notes may not be offered or sold in the
United States, except pursuant to an exemption from the
registration requirements of the Securities Act and applicable
state securities laws.
About Marriott Vacations Worldwide Corporation
Marriott Vacations Worldwide Corporation is a leading
global vacation company that offers vacation ownership, exchange,
rental and resort and property management, along with related
businesses, products and services. The Company has nearly 120
resorts and over 700,000 Owners and Members in a diverse portfolio
that includes seven vacation ownership brands. It also includes
exchange networks and membership programs comprised of nearly 3,200
resorts in over 90 nations and over 1.7 million members, as well as
management of more than 160 other resorts and lodging properties.
As a leader and innovator in the vacation industry, the Company
upholds the highest standards of excellence in serving its
customers, investors and associates while maintaining exclusive,
long-term relationships with Marriott International, Inc. and Hyatt
Hotels Corporation for the development, sales and marketing of
vacation ownership products and services. For more information,
please visit www.marriottvacationsworldwide.com.
Note on forward-looking statements
This press release and accompanying schedules contain
"forward-looking statements" within the meaning of federal
securities laws, including statements about expectations regarding
the redemption of prior securitizations and similar statements
concerning anticipated future events and expectations that are not
historical facts. The Company cautions you that these statements
are not guarantees of future performance and are subject to
numerous risks and uncertainties, including, without limitation,
conditions beyond our control such as the length and severity of
the current COVID-19 pandemic and its effect on our operations; the
effect of any governmental actions, including restrictions on
travel, or mandated employer-paid benefits, in response to the
COVID-19 pandemic; the Company's ability to manage and reduce
expenditures in a low revenue environment; volatility in the
economy and the credit markets, changes in supply and demand for
vacation ownership products, competitive conditions, the
availability of additional financing when and if required, and
other matters disclosed under the heading "Risk Factors" contained
in the Company's most recent Annual Report on Form 10-K filed with
the U.S. Securities and Exchange Commission (the "SEC") and in
subsequent SEC filings, any of which could cause actual results to
differ materially from those expressed in or implied in this press
release. These statements are made as of the date of issuance and
the Company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events, or otherwise.
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SOURCE Marriott Vacations Worldwide
