ORLANDO, Fla., Aug. 15, 2016 /PRNewswire/ -- Marriott
Vacations Worldwide Corporation (NYSE: VAC) announced today the
completion of a securitization of a pool of approximately
$259 million of vacation ownership
loans. Approximately $207
million of the loans were purchased on August 11, 2016 by the MVW Owner Trust 2016-1
(the "Trust"), and all or a portion of the remaining loans may be
purchased by the Trust prior to January 16,
2017. In connection with the securitization, investors
purchased $250 million of notes (the
"Notes") from the Trust. The Notes were offered in a private
placement within the United States
to qualified institutional buyers pursuant to Rule 144A and outside
the United States in accordance
with Regulation S under the Securities Act of 1933, as amended.
Two classes of Notes were issued by the Trust: approximately
$231 million of Class A Notes and
approximately $19 million of Class B
Notes. The Class A Notes have an interest rate of 2.25 percent and
the Class B Notes have an interest rate of 2.64 percent, for an
overall weighted average interest rate of 2.28 percent.
Of the $250 million in proceeds
from the transaction, $50 million
will be held by the Trust 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 $122 million was used to repay all outstanding
amounts previously drawn under Marriott Vacations Worldwide's
$250 million warehouse credit
facility, approximately $6 million
was used to pay transaction expenses and fund required reserves and
the remainder will be used for general corporate purposes.
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
pure-play vacation ownership company, offering a diverse portfolio
of quality products, programs and management expertise with over 60
resorts. Its brands include Marriott Vacation Club, The
Ritz-Carlton Destination Club and Grand Residences by Marriott.
Since entering the industry in 1984 as part of Marriott
International, Inc., the company earned its position as a leader
and innovator in vacation ownership products. The company preserves
high standards of excellence in serving its customers, investors
and associates while maintaining a long-term relationship with
Marriott International. For more information, please visit
www.marriottvacationsworldwide.com.
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SOURCE Marriott Vacations Worldwide