Marriott Vacations Worldwide Completes Second Securitization of Vacation Ownership Loans in 2022


OrlandoAnd the November 3, 2022 /PRNewswire/ - Marriott Vacations Worldwide Corporation (NYSE: VAC) (“MVW” or the “Company”) today announced the completion of its second 2022 timeshare insurance securitization (“Securitization 2022-2”) , filed under Rule 144a and beyond United State Pursuant to Regulation S under the Securities Act of 1933, as amended. 280 million dollars of notes (“notes”) issued in the transaction, backed by a pool of securities approx $286 million Vacation property loans from a variety of brands on the company’s timeshare scheme.

The notes were issued by MVW 2022-2 LLC (“LLC”) in four categories: approx 181 million dollars From Class A notes, approx 45 million dollars From Class B notes, approx $32 million From Class C notes, approx $22 million Class D notes. The interest rate of Class A notes is 6.11 percent, the interest rate of Class B notes is 6.55 percent, the interest rate of Class C notes is 7.62 percent, and the interest rate of Class D notes is 9.0 percent. MVW was selected to hold Class D notes. The weighted average cost of funds for the first three denominations of banknotes sold to third parties was 6.37 percent. The total weighted average interest rate of notes is 6.58 percent, without activating the company’s holding of Class D notes, and the total transaction interest rate is 98 percent.

Approximately $286 million The loans were purchased on November 3, 2022 by the LLC. received MVW $259 million In the proceeds of the first three denominations of banknotes sold to third parties, of which approximately $129 million It was used to pay all amounts owed previously withdrawn under MVW’s 425 million dollars Warehouse Credit Facility, Approx. 6 million dollars It was used to pay transaction expenses and fund required reserves, and the rest $124 million It will be used for general corporate purposes. In connection with the 2022-2 securitization, the company has almost recovered the 2016-1 MVW deal $22 millionwith the LLC buying the majority of the loans obtained through redemption.

This press release does not constitute an offer to sell or the solicitation of an offer to buy and there will be no sale of such securities in any jurisdiction where such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The notes were not registered under the Securities Act of 1933, as amended, or under any state securities law. Unless recorded, notes may not be shown or sold United Stateexcept in accordance with an exemption from the registration requirements of the Securities Act and applicable government securities laws.

About Marriott International Holidays

Marriott Vacations International, Inc. (NYSE: VAC) is a leading global vacations company providing vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services. The company owns more than 120 vacation resorts and nearly 700,000 family owners in a diversified portfolio that includes some of the most recognized brands of vacation ownership. The company also operates exchange networks and membership programs consisting of approximately 3,200 affiliated resorts in more than 90 countries and territories, and provides management services to resorts and other accommodations. As a pioneer and innovator in the vacation industry, the company maintains the highest standards of excellence in service to its customers, investors, and partners while maintaining exclusive, long-term relationships with Marriott International and Hyatt Hotels Corporation for the development, sales and marketing of vacation ownership products and services. For more information, please visit the website www.marriottvacationsworldwide.com.

SOURCE Marriott Vacations Worldwide