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Marriott Vacations Worldwide Corp (NYSE:VAC) Completes Securitization Process of $250 Million Vacation Ownership Loans

Boston, MA 10/13/2014 (wallstreetpr) – According to reports, Marriott Vacations Worldwide Corp (NYSE:VAC) has announced the securitization of a large pool of vacation ownership loans worth $250 million. As per the information, MVW Owner Trust 2014-1 had purchased around $205 million worth of vacation ownership loans.

Insights of the matter:

Marriott Vacations Worldwide Corp (NYSE:VAC) has said that the major part of vacation ownership loans has been sold to a single entity. The remaining part of these loans is expected to be bought by the trust latest by February 16, 2015. Investors went on to purchasing close to $240 million worth of notes from the Trust. As part of the securitization process, these notes were offered as private placement to all the investors. According to information, the trust issued all the notes in two classes i.e. Class A notes worth of $216 million and Class B notes worth of $24 million. Class B Notes usually carry higher interest rate than class B. For example, here the class B Notes carry a decent interest percentage of 2.70%, while Class A notes come with an interest of 2.25%, which is slightly lesser than the class A Notes. The overall interest rate in terms of weighted cost is around 2.29%.

As per the information, out of complete $240 million, trust will keep $43 million with it until it takes care of the entire loan amount. In case, it is more than the required sum, or if it is not used for any objective, then the entire amount will be refunded to people.

Apart from this use, Marriott Vacations Worldwide Corp (NYSE:VAC) also used approximately $4 million to meet various transaction expenses. Apart from it, VAC also used this money for funding its reserves.

Management of the company said that it would continue to take such decisions in order to fulfill market demand. No official comment from anyone came in this regard. Most of the experts think that it’s an ideal step in regard with current market position.

Published by Duncan Oleinic

Duncan Oleinic is from New Yourk. After graduating with a degree in physics, he began his career as an analyst in a broking firm. Through this experience he was able to advance to the role of correspondent for a U.S based financial news provider, where he worked from 2001 to 2007. He subsequently joined a merchant banking firm as a financial analyst focused on valuing unlisted companies in the sub-continent. Over the course of his two years here, he performed valuations of several media companies which were later acquired by peers.



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