Transfer Smart News: Wyndham Timeshares Completes Millions Worth of Term Securitization

The era of low sales and the many owners who want to get out of their timeshares may not be over for the timeshare sector but the economy is already showing a glimpse of recovery and what the timeshare operators could do is just hope for the best. However, there are still improvements in this industry despite the challenges like the Wyndham Worldwide Corporation which had announced that it has completed a term securitization transaction involving the issuance of $300 million of investment-grade asset-backed notes.

The Sierra Timeshare 2010-1 Receivables Funding LLC issued $300 million of A rated vacation ownership loan backed notes, which have an advance rate of 72.25% and a coupon of 4.48%. According to Tom Conforti, chief financial officer of Wyndham Worldwide, this transaction reflects a significant improvement in the asset-backed securities market over the past year and that they are pleased with the execution of this transaction, which demonstrates their experience and expertise in the asset-backed securities market.

Meanwhile, Sierra Timeshare 2010-1 Receivables Funding LLC is an indirect subsidiary of Wyndham Vacation Ownership.  The transaction was accomplished 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.

Today, most timeshare companies are still challenge by low sales and the many owners who want to get rid of their timeshares. Some of the owners even hire a timeshare transfer company such as the Transfer Smart just to get rid of such property. But despite this, there are some things that timeshare companies have to celebrate for like the one done by Wyndham.


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