Westgate Resorts Bond Ratings Upgraded

Mar 14, 2018

Westgate Resorts Bond Ratings Upgraded | Westgate Resorts

ORLANDO, FL—March 14, 2018—DBRS Inc. recently upgraded seven Westgate Resorts bond ratings across three outstanding asset-backed bond issuances.

These upgrades represent the first time that Westgate’s asset-backed bonds have carried any ratings above “A” and the first time that Westgate has achieved a rating of “AAA,” which is the highest rating possible in structured finance.

These upgrades include:

Westgate Resorts 2014-1 LLC

Class A Notes: Upgraded from A to AAA

Class B Notes: Upgraded from BBB to A

Class C Notes: Upgraded from BB to BBB

Westgate Resorts 2015-1 LLC

Class A Notes: Upgraded from A to AAA

Class B Notes: Upgraded from BBB to AA

Westgate Resorts 2015-2 LLC

Class A Notes: Upgraded from A to AAA

Class B Notes: Upgraded from BBB to AA

Westgate has issued nearly $3.2 billion of asset-backed bonds since 1992 with no losses ever realized by its investors. Westgate’s deals include a fast-pay structure that allocates all available cash flow other than servicing fees to pay down the bonds, resulting in short average lives and an alignment of interest with investors.

“We enjoy our relationship with DBRS and work very hard to provide our investor base with a high-quality investment,” says Tom Dugan, Chief Financial Officer, Westgate Resorts. “We believe that these upgrades confirm the performance of our bonds and Westgate’s capabilities as a servicer. Our proven access to the U.S. asset-backed markets complements our long-time banking relationships and provides funding for both Westgate’s owners and the company’s operating needs.”

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 DBRS

DBRS is an independent, privately held, credit ratings agency with offices in Toronto, New York, London, Chicago and Mexico City. For more information, visit www.dbrs.com.

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.