Marriott Vacations closes $460M vacation ownership securitization

Marriott Vacations Worldwide Corporation (NYSE: VAC) has completed a $460 million securitization of vacation ownership loans, according to a company statement.

The notes were issued by MVW 2026-2 LLC and offered to qualified institutional buyers in the United States under Rule 144A, and outside the United States under Regulation S of the Securities Act of 1933. The transaction carried a blended interest rate of 5.91% and a gross advance rate of 98%.

The deal was backed by a pool of approximately $470 million in vacation ownership loans drawn from several of the company's timeshare brands. Three classes of notes were issued: approximately $303 million in Class A Notes at 5.76%, approximately $99 million in Class B Notes at 6.05%, and approximately $58 million in Class C Notes at 6.44%.

The company said it intends to use the net proceeds to pay down outstanding credit facility obligations and for general corporate purposes.

Jason Marino, Executive Vice President and Chief Financial Officer, said: "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."

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