Travel + Leisure Co. (NYSE) announced today the successful completion of a term securitization transaction, issuing $325 million in principal amount of asset-backed notes with a weighted average coupon of 5.18%. The advance rate for this transaction reached 98.00%.
Mike Hug, Chief Financial Officer of Travel + Leisure Co., expressed satisfaction with the outcome, stating, “We are very pleased with the successful completion of our third term securitization of 2024, with both our advance rate and overall coupon improving to the best levels we have achieved in over two years. Our ability to consistently access the capital markets across various economic conditions reflects the market’s confidence in the resiliency of our business.”
The securitization involved Sierra Timeshare 2024-2 Receivables Funding LLC, which issued $148 million in Class A Notes, $71 million in Class B Notes, $75 million in Class C Notes, and $31 million in Class D Notes. The Class A Notes carry a coupon of 4.83%, Class B Notes have a coupon of 4.98%, Class C Notes are set at 5.32%, and Class D Notes have a coupon of 6.93%.
Sierra Timeshare 2024-3 Receivables Funding LLC, an indirect subsidiary of Travel + Leisure Co., completed the transaction under Rule 144A and Regulation S, which allows for the placement of securities not registered under the Securities Act of 1933 or state securities laws. The announcement serves as a matter of record for the completed sale of these securities.