Westgate Resorts Secures $206 Million in Timeshare Collateralized Notes

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Westgate Resorts, the largest privately held timeshare company in the world, has successfully completed a securitization through Westgate Resorts 2024-1 LLC. The company issued $206 million of timeshare collateralized notes to 14 different investors, marking its seventh securitization since 2012.

The securitization process involved the issuance of four classes of notes: $69,028,000 of AAA-rated Class A Notes, $62,530,000 of A-rated Class B Notes, $52,680,000 of BBB-rated Class C Notes, and $21,690,000 of BB-rated Class D Notes. These notes were offered to qualified institutional buyers in the United States and outside the country in accordance with relevant regulations.

DBRS Morningstar, a renowned credit rating agency, provided ratings for the securitization. The notes carry varying coupon rates, reflecting their respective credit ratings. The Class A Notes have a rate of 6.06 percent, Class B Notes at 6.56 percent, Class C Notes at 7.06 percent, and Class D Notes at 9.26 percent. The weighted average coupon rate for all classes of notes is 6.8 percent.

Westgate Resorts expressed satisfaction with the outcome of the securitization, highlighting the strong interest from investors and their faith in the company, its servicing platform, and experienced management team. The bonds were sold through Triumph Capital Markets as Sole Structuring Advisor and Joint Bookrunning Manager.

It is important to note that the sale of these securities is limited to jurisdictions where it is in full compliance with securities laws. The securities have not been registered under the Securities Act 1993 or any state securities law, and as such, cannot be offered or sold in the United States without an exemption.

Westgate Resorts, founded by David Siegel in 1982, is headquartered in Orlando and is a major resort developer in the United States. The company boasts 18 themed destination resorts across the nation, offering over 13,400 luxury villas and hotel rooms in popular vacation destinations. For further information about Westgate Resorts, visit their official website.

For media inquiries, please contact The Zimmerman Agency at [email protected] or call 850-668-2222.

Source: Westgate Resorts

Westgate Resorts recently secured $206 million in timeshare collateralized notes, marking its seventh securitization since 2012. The issuance involved four classes of notes, with varying credit ratings: Class A Notes (AAA-rated), Class B Notes (A-rated), Class C Notes (BBB-rated), and Class D Notes (BB-rated).

DBRS Morningstar provided ratings for the securitization, with the notes carrying different coupon rates corresponding to their credit ratings. The Class A Notes have a rate of 6.06 percent, Class B Notes at 6.56 percent, Class C Notes at 7.06 percent, and Class D Notes at 9.26 percent. The weighted average coupon rate for all classes of notes is 6.8 percent.

The success of the securitization demonstrates strong investor interest in Westgate Resorts, as well as confidence in the company, its servicing platform, and experienced management team. The bonds were sold through Triumph Capital Markets as Sole Structuring Advisor and Joint Bookrunning Manager.

It is worth noting that the sale of these securities is limited to jurisdictions where compliance with securities laws is ensured. The securities have not been registered under the Securities Act 1993 or any state securities law, and therefore cannot be offered or sold in the United States without an exemption.

Westgate Resorts, founded by David Siegel in 1982, is a leading resort developer in the United States. Headquartered in Orlando, the company operates 18 themed destination resorts across the nation, providing over 13,400 luxury villas and hotel rooms in popular vacation destinations.

Advantages of Westgate Resorts’ securitization include access to capital for investment or expansion, diversification of risk for investors, and the ability to tailor different classes of notes to appeal to various investor preferences.

However, securitization also poses some disadvantages. For investors, there may be concerns about the underlying collateral (timeshare assets) and the potential risks associated with their value. There is also potential for market saturation and competition in the timeshare industry, which may affect demand and pricing.

In terms of market trends, the timeshare industry has faced challenges in recent years due to external factors such as economic downturns and natural disasters that impact travel and tourism. Additionally, the emergence of alternative accommodations like vacation rentals and home-sharing platforms has provided increased competition.

Forecasts for the timeshare industry suggest a slow recovery post-pandemic, with a focus on enhanced sanitization and hygiene measures to provide safe and comfortable vacation experiences. The industry may also see a shift towards more flexible ownership options and utilization of technology to enhance customer experiences.

Overall, while Westgate Resorts’ securitization demonstrates investor confidence in the company, challenges and controversies associated with the timeshare industry require careful consideration.

For further information about Westgate Resorts, visit their official website.