Marriott Vacations Worldwide announced the completion of a $460 million securitization of vacation ownership loans, reinforcing its access to capital markets and supporting its broader liquidity strategy.
The transaction was executed through MVW 2026-1 LLC and involved the issuance of notes to qualified institutional buyers in the United States under Rule 144A, as well as to investors outside the U.S. under Regulation S. The securitization carried a blended interest rate of 4.86% and achieved a gross advance rate of 98%.
The offering was backed by approximately $470 million in vacation ownership loans across the company’s timeshare brands. The issuance included three tranches: approximately $277 million of Class A notes with a 4.67% interest rate, $97 million of Class B notes at 4.97%, and $86 million of Class C notes at 5.36%.
Proceeds from the transaction will be used to repay outstanding borrowings under the company’s credit facilities and for general corporate purposes, enhancing financial flexibility and supporting ongoing operations.
The securitization highlights the company’s continued ability to access structured finance markets, leveraging its portfolio of consumer receivables and stable business model to secure favorable financing terms even amid broader market volatility.
KEY QUOTE:
“Our ability to execute consistently and efficiently in the securitization market, even during periods of market volatility, is grounded in the durability of our consumer receivables and the stability of our business model.”
Jason Marino, Executive Vice President And Chief Financial Officer, Marriott Vacations Worldwide
