Marriott Vacations Worldwide Corporation has completed a $460 million securitization of vacation ownership loans, adding liquidity through a transaction backed by receivables from multiple timeshare brands. The notes were issued by MVW 2026-2 LLC and were offered to qualified institutional buyers in the United States under Rule 144A and outside the United States under Regulation S.
The securitization carries a blended interest rate of 5.91% and a gross advance rate of 98%. It is backed by a pool of approximately $470 million of vacation ownership loans, giving investors exposure to receivables generated across Marriott Vacations Worldwide’s portfolio of vacation ownership businesses.
Three classes of notes were issued. The transaction includes approximately $303 million of Class A notes carrying a 5.76% interest rate, approximately $99 million of Class B notes carrying a 6.05% rate, and approximately $58 million of Class C notes carrying a 6.44% rate. Marriott Vacations Worldwide plans to use the net proceeds to reduce outstanding credit facility obligations and for other general corporate purposes.
The financing adds to the company’s access to asset-backed securities markets at a time when management described the ABS environment as challenging. Marriott Vacations Worldwide operates 120 vacation ownership resorts and serves approximately 700,000 owner families. Its exchange network and membership programs include more than 3,200 affiliated resorts across more than 90 countries and territories.
The company also provides resort and lodging property management services and maintains long-term relationships with Marriott International and an affiliate of Hyatt Hotels Corporation for the development, sales, and marketing of vacation ownership products and services. The latest securitization gives the company additional balance-sheet flexibility while refinancing part of its existing credit facility exposure.
KEY QUOTE:
“We are pleased with the successful execution of this transaction in a challenging ABS market. Our access to liquidity is supported by the strength of our historical performance, business and customer profile and our leading ABS platform.”
Jason Marino, Executive Vice President And Chief Financial Officer Of Marriott Vacations Worldwide
