Marriott Vacations Worldwide Corp. (VAC) announced the completion of a securitization of a pool of around $250 million of vacation ownership loans.
Approximately $205 million of the loans were purchased on October 9, by the MVW Owner Trust 2014-1. All or a portion of the remaining loans may be purchased by the Trust before February 16, 2015.
In connection with the securitization, investors purchased $240 million of notes from the Trust. The notes were offered in a private placement.
Two classes of notes were issued by the Trust: approximately $216 million of Class A notes and around $24 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 2.70 percent, for an overall weighted average interest rate of 2.29 percent.
Of the $240 million in proceeds from the transaction, approximately $43 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 $4 million was used to pay transaction expenses and fund required reserves. The remainder will be used for general corporate purposes.
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