Westgate Resorts Completes $275,500,000 Securitization of Timeshare Loans

ORLANDO, Fla., Jan. 25, 2022 /PRNewswire/ -- Westgate Resorts announced today that it has completed a securitization through Westgate Resorts 2022-1 LLC (the "Issuer") for the issuance of $275,500,000 of timeshare collateralized notes to 22 different investors, ten of which were first time purchasers of Westgate's timeshare bonds. The notes were offered in a private placement within the United States to qualified institutional buyers pursuant to Rule 144A and outside the United States in accordance with Regulation S under the Securities Act 1933, as amended.

The securitization was rated by DBRS Morningstar and four classes of Notes were issued for $105,000,000 of AAA rated Class A Notes, $78,000,000 of A rated Class B Notes, $71,500,000 of BBB rated Class C Notes, and $21,000,000 of BB rated Class D Notes. The Class A Notes have a coupon rate of 1.788 percent, the Class B Notes have a coupon rate of 2.288 percent, the Class C Notes have a coupon rate of 2.488 percent, and the Class D Notes have a coupon rate of 3.838 percent for an overall weighted average coupon rate of 2.267 percent. The advance rate on the transaction was 90.12 percent.

"We are very pleased with the results of this securitization and the enthusiasm of the investor community, especially given the world pandemic, the very volatile bond and stock market conditions and the current geopolitical situation. The strong interest from the investment community demonstrates faith in Westgate's business model, its servicing platform, the performance of prior structured transactions and our experienced management team," said Tom Dugan, Chief Financial Officer of Westgate Resorts.  The bonds were sold through Amherst Pierpont Securities Group, LLC. Since 1992, Westgate has sold approximately $4 billion of notes in the securitization market.

This press release does not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The Notes have not been registered under the Securities Act 1993, as amended, or any state securities law. Unless so registered, the Notes may not be offered or sold in the United States, except pursuant to an exemption from the registration requirements of the Securities Act and applicable state securities laws.

About Westgate Resorts

Westgate Resorts is one of the largest timeshare resort developers in the United States. Founded in 1982 by David Siegel, the company is headquartered in Orlando with 23 themed destination resorts nationwide, featuring 13,500 luxury villas and hotel rooms in popular vacation destinations, including Orlando, FL; Park City, UT; Las Vegas, NV; Myrtle Beach, SC; Miami Beach, FL; Daytona Beach, FL; Cocoa Beach, FL; River Ranch, FL; Gatlinburg, TN; New York City, NY; Williamsburg, VA; Mesa, AZ; and Branson, MO. Most Westgate resorts feature a variety of unique restaurant, retail, and spa concepts, including Drafts Sports Bar & Grill, Westgate Smokehouse Grill, Edge Steakhouse, and Serenity Spa by Westgate. For more information about Westgate Resorts, please visit www.westgateresorts.com.

About Amherst Pierpont

Amherst Pierpont is an independent broker-dealer operating in the fixed income capital markets. Amherst Pierpont's experienced team of professionals delivers actionable trade ideas and customized solutions to its institutional client base. Much of the value added service Amherst Pierpont provides is driven by its state-of-the-art data and analytics platform and its focus on market strategy, both of which are designed to identify relative value and quantify risk reward in the fixed income markets. Amherst Pierpont is a self-clearing member of the Fixed Income Clearing Corporation and a member of FINRA and SIPC.

SOURCE Westgate Resorts