Westgate Resorts Completes Securitization of Timeshare Loans

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Apr 10, 2017, 11:00 ET

ORLANDO, Fla., April 10, 2017 /PRNewswire/ -- On April 6, 2017, Westgate Resorts completed a securitization through Westgate Resorts 2017-1 LLC (the "Issuer"). The Issuer sold $175 million of notes (the "Notes") to various capital markets investors, including a number of investors that have participated in prior Westgate securitizations. 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 of 1933, as amended.

The Notes were rated by DBRS and issued in two classes: $132.5 million of Class A Notes rated A (sf), and $42.5 million of Class B Notes rated BBB (sf). The Class A Notes have a coupon rate of 3.05 percent; the Class B Notes have a coupon rate of 4.05 percent, for an overall weighted average coupon rate of 3.29 percent. The advance rate for this transaction was 90.15 percent.

The bonds were sold through Amherst Pierpont Securities Group, Lead Manager, and Capital One Securities, Inc., Co-Manager, and bring the total of notes sold by Westgate/Amherst in the securitization market during the last four years to approximately $1.7 billion. Since 1992, Westgate has sold approximately $3.2 billion of notes in the securitization market. "We are very pleased with the results of this securitization as the level of demand speaks well not only for our company but also the timeshare industry in general. The continued execution of these transactions demonstrates the faith the investment community has in the Westgate business model, its servicing platform, the performance of prior structured transactions, and its management team," stated Tom Dugan, Chief Financial Officer of Westgate Resorts.

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 of 1933, 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 the largest privately held timeshare company in the world and one of the largest resort developers in the United States. Founded in 1982 by David Siegel, the company is headquartered in Orlando with 28 themed destination resorts nationwide, featuring more than 13,000 luxury villas and hotel rooms in popular vacation destinations, including Orlando; Park City, Utah; Las Vegas; Myrtle Beach, SC; Miami Beach, FL; Daytona Beach, FL; Cocoa Beach, FL; River Ranch, FL; Gatlinburg, TN; Williamsburg, VA; Mesa, AZ; Branson, MO; and Tunica, MS. Most Westgate resorts feature a variety of unique restaurant, retail and spa concepts, including Drafts Sports Bar & Grill, Westgate Smokehouse Grill, Edge Steakhouse, Westgate Marketplace & Deli, and Serenity Spa by Westgate. For more information about Westgate Resorts, please visit www.westgateresorts.com.

About Amherst Pierpont
Amherst Pierpont Securities was formed in 2014 through the merger of Amherst Securities (founded in 1993) and Pierpont Securities (founded in 2009). The combination melds Amherst's unparalleled leadership in mortgage-related securities and securitized products with Pierpont's strength in liquid products and scalable infrastructure. Positioned to capitalize on growth opportunities, Amherst Pierpont employs approximately 200 Fixed Income professionals with vast industry experience and the expertise to help clients succeed in today's markets. Amherst Pierpont is a member of FINRA and SIPC. For additional information about Amherst Pierpont, please visit their website at www.apsec.com.

SOURCE Westgate Resorts