Wyndham Destinations completes $575 Million term securitization

Rhea-AI Summary

Wyndham Destinations (NYSE: WYND) has successfully executed a $575 million term securitization transaction via Sierra Timeshare 2020-2 Receivables Funding LLC. The issuance includes Class A Notes at $173 million (1.33% coupon), Class B Notes at $193 million (2.32% coupon), Class C Notes at $144 million (3.51% coupon), and Class D Notes at $65 million (6.59% coupon), resulting in an overall weighted average coupon of 2.81%. CFO Michael Hug noted strong investor demand allowed for an upsizing of the transaction by $175 million, marking the largest term securitization since 2007.

Positive

• Completed a $575 million term securitization transaction, indicating strong investor confidence.
• Upsized the offering by $175 million due to high demand and favorable market conditions.

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• None.

ORLANDO, Fla., Aug. 13, 2020 /PRNewswire/ -- Wyndham Destinations, Inc. (NYSE: WYND) announced today that it has completed a term securitization transaction involving the issuance of $575 million of asset-backed notes. Sierra Timeshare 2020-2 Receivables Funding LLC issued approximately $173 million of Class A Notes, approximately $193 million of Class B Notes, approximately $144 million of Class C Notes, and approximately $65 million of Class D Notes. The Class A Notes have a coupon of 1.33%, the Class B Notes have a coupon of 2.32%, the Class C Notes have a coupon of 3.51%, and the Class D Notes have a coupon of 6.59% for an overall weighted average coupon of 2.81%. The advance rate for this transaction was 90%.

"Our first public term offering of 2020 was very well received by the market," said Michael Hug, CFO of Wyndham Destinations. "Continued strong investor demand and the lower benchmark rate allowed us to upsize the transaction by $175 million to $575 million while pricing significantly through the lowest end of guidance levels. This transaction was our largest term securitization since 2007."

Sierra Timeshare 2020-2 Receivables Funding LLC is an indirect subsidiary of Wyndham Destinations. 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 Wyndham Destinations
Wyndham Destinations (NYSE: WYND), the world's largest vacation club and exchange company, is on a mission to put the world on vacation. The company offers more than four million members and owner families the opportunity to own, exchange or rent their vacation experience while enjoying quality, flexibility and great value from a trusted brand. The company's Wyndham Vacation Clubs offer 230 resorts that provide a contemporary take on the timeshare model through brands Club Wyndham^® WorldMark^® by Wyndham, and Margaritaville Vacation Club^® by Wyndham. With a global presence in 110 countries, the company's membership travel business -- Panorama -- includes today's leading vacation exchange, leisure travel, and technology brands including RCI, the world's leader in vacation exchange that provides access to 4,200+ affiliated resorts around the world; and Extra Holidays, offering condo vacations at hotel prices. Year after year, our worldwide team of associates delivers exceptional vacation experiences to families around the globe as they make memories to last a lifetime. At Wyndham Destinations, our world is your destination. Connect with us on Twitter, Facebook, Instagram, YouTube and LinkedIn.

Web Resources:
Wyndham Destinations
Wyndham Destinations Investor Relations
Twitter: @WynDestinations
LinkedIn: @WyndhamDestinations

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SOURCE Wyndham Destinations

FAQ

What was the amount of the securitization completed by Wyndham Destinations on August 13, 2020?

Wyndham Destinations completed a $575 million term securitization transaction.

What are the coupon rates for the notes issued in Wyndham's securitization?

The coupon rates are 1.33% for Class A Notes, 2.32% for Class B Notes, 3.51% for Class C Notes, and 6.59% for Class D Notes.

Who is the CFO of Wyndham Destinations and what did he say about the securitization?

Michael Hug is the CFO of Wyndham Destinations, and he mentioned that the securitization was well received, highlighting strong investor demand.

What is the significance of Wyndham's securitization transaction completed in 2020?

This securitization is significant as it is the largest term securitization since 2007, reflecting strong market conditions and investor interest.