Westgate Resorts recently announced that it has completed a securitization through Westgate Resorts 2022-1 LLC for the issuance of $275,500,000 of timeshare collateralized notes to 22 different investors, ten of which were first time purchasers of Westgate’s timeshare bonds. 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 1933, as amended.
The securitization was rated by DBRS Morningstar and four classes of Notes were issued for $105,000,000 of AAA rated Class A Notes, $78,000,000 of A rated Class B Notes, $71,500,000 of BBB rated Class C Notes, and $21,000,000 of BB rated Class D Notes. The Class A Notes have a coupon rate of 1.788 percent, the Class B Notes have a coupon rate of 2.288 percent, the Class C Notes have a coupon rate of 2.488 percent, and the Class D Notes have a coupon rate of 3.838 percent for an overall weighted average coupon rate of 2.267 percent. The advance rate on the transaction was 90.12 percent.
“We are very pleased with the results of this securitization and the enthusiasm of the investor community, especially given the world pandemic, the very volatile bond and stock market conditions and the current geopolitical situation. The strong interest from the investment community demonstrates faith in Westgate’s business model, its servicing platform, the performance of prior structured transactions and our experienced management team,” said Tom Dugan, Chief Financial Officer of Westgate Resorts.
The bonds were sold through Amherst Pierpont Securities Group, LLC. Since 1992, Westgate has sold approximately $4 billion of notes in the securitization market.
