ILG, Inc. (Nasdaq: ILG) announced today that it has completed a term securitization transaction involving the issuance of $287 million of asset-backed notes. VSE 2018-A VOI Mortgage LLC, an indirect wholly-owned subsidiary of Vistana Signature Experiences, Inc. (“Vistana”) issued these notes in three tranches: $209 million of Class A notes with an interest rate of 3.56%; $49 million of Class B notes with an interest rate of 3.72%; and $29 million of Class C notes with an interest rate of 4.02%. The notes are backed by vacation ownership loans and had an overall weighted average coupon of 3.63%. The advance rate for this transaction was approximately 98%.
Of the $287 million in proceeds from the transaction, $25 million was used to redeem the outstanding balance on Vistana’s 2012 securitization, and $71 million will be held in escrow to purchase additional vacation ownership loans, or, if not used for said purpose, returned to the investors. The remainder will be used to pay transaction expenses, fund required reserves, pay down a portion of the borrowings outstanding under ILG’s $600 million revolving credit facility and for general corporate purposes.
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 ILG
ILG (Nasdaq: ILG) is a leading provider of professionally delivered vacation experiences and the exclusive global licensee for the Hyatt ®, Sheraton ®, and Westin ® brands in vacation ownership. The company offers its owners, members, and guests access to an array of benefits and services, as well as world-class destinations through its international portfolio of resorts and clubs. ILG’s operating businesses include Aqua-Aston Hospitality, Hyatt Vacation Ownership, Interval International, Trading Places International, Vacation Resorts International, VRI Europe, and Vistana Signature Experiences. Through its subsidiaries, ILG independently owns and manages the Hyatt Residence Club program and uses the Hyatt Vacation Ownership name and other Hyatt marks under license from affiliates of Hyatt Hotels Corporation. In addition, ILG’s Vistana Signature Experiences, Inc. is the exclusive provider of vacation ownership for the Westin and Sheraton brands and uses related trademarks under license from Starwood Hotels & Resorts Worldwide, LLC. Headquartered in Miami, Florida, ILG has offices in 15 countries and more than 10,000 associates. For more information, visit www.ilg.com.
