Westgate Resorts Completes Securitization of Timeshare Loans

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Oct 20, 2014, 05:00 ET

ORLANDO, Fla., Oct. 20, 2014 /PRNewswire/ -- Westgate Resorts has announced the completion of a securitization of a pool of approximately $227 million of timeshare loans. Approximately $182 million of the loans were contributed on September 19, 2014, to Westgate Resorts 2014-1 LLC (the "Issuer"), and all or a portion of the remaining loans may be contributed to the Issuer prior to December 19, 2014. In connection with the securitization, twenty (20) investors purchased $215 million of notes (the "Notes") from the Issuer. 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.

Three classes of Notes were issued by the Issuer: approximately $127 million of Class A Notes, approximately $53 million of Class B Notes, and approximately $35 million of Class C Notes. The Class A Notes have an interest rate of 2.15 percent, the Class B Notes have an interest rate of 3.25 percent, and the Class C Notes have an interest rate of 5.50 percent for an overall weighted average interest rate of 2.97 percent. The advance rate for this transaction was 94.5%.

The bonds were sold through Amherst Securities Group and bring the total of notes sold by Westgate/Amherst during the last 2 ½ years to approximately $1 Billion. "The continued execution of these transactions demonstrates the faith the investment community has in the Westgate business model, its servicing platform and management group," stated Tom Dugan, Chief Financial Officer.

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

Founded in 1982 by David A. Siegel, Westgate Resorts is one of the largest resort developers in the United States. Westgate features 28 themed destination resorts with over 13,000 luxury villas in premier locations throughout the United States such as Orlando, Florida; Park City, Utah; Las Vegas, Nevada; Gatlinburg, Tennessee; Myrtle Beach, South Carolina; Williamsburg, Virginia; Miami, Florida; Branson, Missouri; Mesa, Arizona; and Tunica, Mississippi. Most Westgate Resorts locations 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, visit www.westgateresorts.com.

About Amherst

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.aspec.com.

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SOURCE Westgate Resorts