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Westgate Resorts Completes Securitization of $275M in Timeshare Loans

Westgate Resorts Completes Securitization of $275M in Timeshare Loans

Jul 15, 2020

Orlando (July 15, 2020) –Westgate Resorts announced today that it has completed a securitization through Westgate Resorts 2020 LLC (the “Issuer”) for the issuance of $275,000,000 of timeshare loans to 22 different investors. 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 three classes of Notes were issued for $113,900,000 of AAA rated Class A Notes, $86,600,000 of A rated Class B Notes, and $72,500,000 of BBB low rated Class C Notes. The Class A Notes have a coupon rate 2.713 percent; the Class B Notes have a coupon rate of 3.963 percent, and the Class C Notes have a coupon rate of 6.213 percent for an overall weighted average coupon rate of 4.04 percent. The advance rate on the transaction was 85.0 percent.

“We are very pleased with the results of this securitization and the enthusiasm of the investor community, especially given the world pandemic and very volatile bond and stock market conditions. The strong interest from the investment community demonstrates faith in the Westgate business model, its servicing platform, the performance of prior structured transactions and its experienced management team,” said Tom Dugan, Chief Financial Officer of Westgate Resorts. “We are especially proud of the AAA rating provided by DBRS Morningstar and the rating upgrades to our existing bonds, as was previously announced on March 5, 2020.” The bonds were sold through Amherst Pierpont Securities Group, as Lead Manager, and Capital One Securities, Inc., Co-Manager. Since 1992, Westgate has sold approximately $3 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 themed destination resorts nationwide, featuring 14,000 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; 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 Group (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.