Travel + Leisure Co. Completes $300 Million Term Securitization

Rhea-AI Summary

Travel + Leisure Co. completes $300 million term securitization transaction

Positive

• Travel + Leisure Co. completes successful term securitization transaction
• Confidence in the quality and dependability of vacation ownership business
• Completed three ABS term transactions totaling $850 million in principal amount in 2023

Negative

• None.

ORLANDO, Fla.--(BUSINESS WIRE)-- Travel + Leisure Co. (NYSE:TNL) announced today that it has completed a term securitization transaction involving the issuance of $300 million in principal amount of asset-backed notes with an overall weighted average coupon of 6.78%. The advance rate for this transaction was 91.75%.

“We are very pleased with the successful completion of our third term securitization of 2023, once again demonstrating confidence in the quality and dependability of our vacation ownership business,” said Mike Hug, Chief Financial Officer of Travel + Leisure Co. “With this issuance we have completed three ABS term transactions totaling $850 million in principal amount in 2023.”

Sierra Timeshare 2023-3 Receivables Funding LLC issued $123 million of Class A Notes, $79 million of Class B Notes, $64 million of Class C Notes, and $34 million of Class D Notes. The Class A Notes have a coupon of 6.10%, the Class B Notes have a coupon of 6.44%, the Class C Notes have a coupon of 7.12%, and the Class D Notes have a coupon of 9.44%.

Sierra Timeshare 2023-3 Receivables Funding LLC is an indirect subsidiary of Travel + Leisure Co. The transaction was completed in reliance upon Rule 144A and Regulation S as a placement of securities not registered under the Securities Act of 1933, as amended, or any state securities law. All of such securities having been sold, this announcement of their sale appears as a matter of record only.

About Travel + Leisure Co.

As the world’s leading membership and leisure travel company, Travel + Leisure Co. (NYSE:TNL) transformed the way families vacation with the introduction of the most dynamic points-based vacation ownership program at Club Wyndham, and the first vacation exchange network, RCI. The company delivers more than six million vacations each year at 245+ timeshare resorts worldwide, through tailored travel and membership products, and via Travel + Leisure GO - the signature subscription travel club inspired by the pages of Travel + Leisure magazine. With hospitality and responsible tourism at the heart of all we do, our 19,500+ dedicated associates bring out the best in people and places around the globe. We put the world on vacation. Learn more at travelandleisureco.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231019730968/en/

Investor Contact:

Christopher Agnew

Senior Vice President, FP&A and Investor Relations

(407) 626-4050

Christopher.Agnew@travelandleisure.com

Media Contact:

Steven Goldsmith

Public Relations

(407) 626-5882

Steven.Goldsmith@travelandleisure.com

Source: Travel + Leisure Co.

FAQ

What is the total amount of asset-backed notes issued in the transaction?

$300 million

What is the weighted average coupon for the asset-backed notes?

6.78%

How many ABS term transactions have been completed in 2023?

Three

What is the total principal amount of ABS term transactions completed in 2023?

$850 million