Travel + Leisure Co. Completes $325 Million Term Securitization
Travel + Leisure Co. (NYSE:TNL) has successfully completed a $325 million term securitization transaction. The asset-backed notes were issued with an overall weighted average coupon of 5.18% and an advance rate of 98.00%. The transaction involved the issuance of four classes of notes:
- Class A: $148 million at 4.83% coupon
- Class B: $71 million at 4.98% coupon
- Class C: $75 million at 5.32% coupon
- Class D: $31 million at 6.93% coupon
CFO Mike Hug highlighted that this marks their third term securitization of 2024, with improved advance rates and overall coupon reaching the best levels in over two years. The transaction was completed under Rule 144A and Regulation S as a private placement.
Travel + Leisure Co. (NYSE:TNL) ha completato con successo una transazione di cartolarizzazione a termine da 325 milioni di dollari. I titoli garantiti da attivi sono stati emessi con un tasso di interesse medio ponderato complessivo del 5,18% e una percentuale di finanziamento del 98,00%. La transazione ha comportato l'emissione di quattro classi di titoli:
- Classe A: 148 milioni di dollari a un tasso del 4,83%
- Classe B: 71 milioni di dollari a un tasso del 4,98%
- Classe C: 75 milioni di dollari a un tasso del 5,32%
- Classe D: 31 milioni di dollari a un tasso del 6,93%
Il CFO Mike Hug ha sottolineato che si tratta della terza cartolarizzazione a termine del 2024, con tassi di finanziamento migliorati e tassi di interesse complessivi che raggiungono i livelli migliori in oltre due anni. La transazione è stata completata ai sensi della Regola 144A e del Regolamento S come collocamento privato.
Travel + Leisure Co. (NYSE:TNL) ha completado con éxito una transacción de titularización a término de 325 millones de dólares. Los bonos respaldados por activos se emitieron con una tasa de interés promedio ponderada general del 5,18% y una tasa de avance del 98,00%. La transacción involucró la emisión de cuatro clases de bonos:
- Clase A: 148 millones de dólares con un cupón del 4,83%
- Clase B: 71 millones de dólares con un cupón del 4,98%
- Clase C: 75 millones de dólares con un cupón del 5,32%
- Clase D: 31 millones de dólares con un cupón del 6,93%
El CFO Mike Hug destacó que esta es su tercera titularización a término de 2024, con tasas de avance mejoradas y un cupón total que alcanza los mejores niveles en más de dos años. La transacción se completó bajo la Regla 144A y la Regulación S como una colocación privada.
Travel + Leisure Co. (NYSE:TNL)은 성공적으로 3억 2천5백만 달러의 기한 유동화 거래를 완료했습니다. 자산 담보 채권은 전체 가중 평균 쿠폰율 5.18%로 발행되었으며, 자금 조달 비율은 98.00%입니다. 이번 거래는 네 가지 클래스의 채권을 발행하는 것을 포함했습니다:
- 클래스 A: 1억 4천8백만 달러, 쿠폰율 4.83%
- 클래스 B: 7천1백만 달러, 쿠폰율 4.98%
- 클래스 C: 7천5백만 달러, 쿠폰율 5.32%
- 클래스 D: 3천1백만 달러, 쿠폰율 6.93%
CFO 마이크 휴그는 이번 거래가 2024년 세 번째 기한 유동화임을 강조하며, 자금 조달 비율이 개선되고 총 쿠폰이 2년 이상 만에 가장 높은 수준에 도달했다고 말했습니다. 이 거래는 144A 규칙 및 S 규정에 따라 사모로 완료되었습니다.
Travel + Leisure Co. (NYSE:TNL) a réussi à compléter une transaction de titrisation à terme de 325 millions de dollars. Les notes adossées à des actifs ont été émises avec un coupon moyen pondéré global de 5,18% et un taux d'avance de 98,00%. La transaction a impliqué l'émission de quatre classes de notes :
- Classe A: 148 millions de dollars avec un coupon de 4,83%
- Classe B: 71 millions de dollars avec un coupon de 4,98%
- Classe C: 75 millions de dollars avec un coupon de 5,32%
- Classe D: 31 millions de dollars avec un coupon de 6,93%
Le CFO Mike Hug a souligné qu'il s'agit de leur troisième titrisation à terme de 2024, avec des taux d'avance améliorés et un coupon global atteignant les meilleurs niveaux depuis plus de deux ans. La transaction a été complétée conformément à la règle 144A et au règlement S en tant qu'offre privée.
Travel + Leisure Co. (NYSE:TNL) hat erfolgreich eine Forderungsverbriefung in Höhe von 325 Millionen US-Dollar abgeschlossen. Die asset-backed Anleihen wurden mit einem insgesamt gewichteten durchschnittlichen Kupon von 5,18% und einem Beleihungsauslauf von 98,00% ausgegeben. Die Transaktion umfasste die Emission von vier Klassen von Anleihen:
- Klasse A: 148 Millionen US-Dollar mit einem Kupon von 4,83%
- Klasse B: 71 Millionen US-Dollar mit einem Kupon von 4,98%
- Klasse C: 75 Millionen US-Dollar mit einem Kupon von 5,32%
- Klasse D: 31 Millionen US-Dollar mit einem Kupon von 6,93%
Der CFO Mike Hug hob hervor, dass dies die dritte Forderungsverbriefung des Jahres 2024 ist, mit verbesserten Beleihungsausläufen und einem Gesamtkupon, der die besten Werte der letzten zwei Jahre erreicht. Die Transaktion wurde gemäß Regel 144A und der Regulierung S als Privatplatzierung abgeschlossen.
- Successful completion of $325 million term securitization
- Improved advance rate of 98.00%, best in over two years
- Overall weighted average coupon of 5.18%, best in over two years
- Demonstrates consistent access to capital markets across various economic conditions
- None.
Insights
Travel + Leisure Co.'s successful completion of a
The improved terms, described as the best in over two years, suggest a positive trend in the company's borrowing costs. This could lead to lower interest expenses and potentially improved profitability. The ability to access capital markets consistently, even in varying economic conditions, is a strong indicator of TNL's financial resilience and market trust.
For investors, this transaction signals TNL's robust cash flow generation from its timeshare business and its capacity to optimize its capital structure. The successful securitization may provide additional liquidity for growth initiatives or debt refinancing, potentially enhancing shareholder value in the long term.
This securitization transaction reflects positively on the broader travel and leisure industry's recovery. TNL's ability to secure favorable terms suggests that investors are optimistic about the sector's prospects, particularly in the timeshare and vacation ownership segments.
The company's portfolio approach, catering to modern leisure travelers with diverse brands, appears to be resonating with both consumers and investors. This strategy may provide resilience against market fluctuations and changing travel trends. The emphasis on responsible tourism aligns with growing consumer preferences, potentially strengthening TNL's market position.
For stakeholders, this transaction indicates that TNL is well-positioned to capitalize on the ongoing travel rebound. The improved financial flexibility could allow the company to invest in enhancing its offerings or expand its market reach, potentially leading to increased market share and revenue growth in the competitive travel industry landscape.
“We are very pleased with the successful completion of our third term securitization of 2024, with both our advance rate and overall coupon improving to the best levels we have achieved in over two years,” said Mike Hug, Chief Financial Officer of Travel + Leisure Co. “We have been able to consistently access the capital markets through a variety of economic conditions, reflecting the market’s confidence in the resiliency of our business.”
Sierra Timeshare 2024-2 Receivables Funding LLC issued
Sierra Timeshare 2024-3 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.
Travel + Leisure Co. (NYSE:TNL) provides more than six million vacations to travelers every year. The company operates a portfolio of vacation resort, travel club, and lifestyle travel brands designed to meet the needs of the modern leisure traveler, whether they’re traveling the world or staying a little closer to home. With hospitality and responsible tourism at its heart, the company’s 19,000+ dedicated associates around the globe help the company achieve its mission to put the world on vacation. Learn more at travelandleisureco.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241018846822/en/
Investor Contact:
Jill Greer
Investor Relations
(407) 626-4050
IR@travelandleisure.com
Media Contact:
Steven Goldsmith
Public Relations
(407) 626-5882
Media@travelandleisure.com
Source: Travel + Leisure Co.
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