ILG,Inc. (NASDAQ:ILG) Files An 8-K Other EventsITEM 8.01. Other Events.
On September22, 2017, subsidiaries of ILG,Inc. completed a securitization transaction involving the issuance of $325 million of asset-backed notes (the “Notes”). VSE 2017-A VOI Mortgage LLC, an indirect wholly-owned subsidiary of Vistana Experiences,Inc. (“Vistana”) issuedthese notes in three tranches: $240 millionof ClassA notes rated AAA/AAA with an interest rate of 2.33%; $59 million of ClassB notes rated A/A with an interest rate of 2.63%; and $26 million of ClassC notes rated BBB/BBB with an interest rate of 2.93%. The notes are backed by vacation ownership loans from both Vistana Experiences and Hyatt Vacation Ownership and had an overall weighted average coupon of 2.43%. The advance rate for this transaction was approximately 97%.
Of the$325 millionin proceeds from the transaction,$65 million will be held in escrow to purchase additional vacation ownership loans, including the redemption of the outstanding balance on Vistana’s 2011 securitization or, if not used for said purpose, returned to the investors. VSE 2017-A VOI Mortgage LLC retains a subordinated residual interest in the trust that holds the underlying vacation ownership loans. The remainder of the proceeds will be used to pay transaction expenses, fund required reserves, pay down a portion of the borrowings outstanding under ILG’s $600 million revolving credit facility and for general corporate purposes. ILG has accounted for the securitization as a secured borrowing and therefore will not recognize a gain or loss in the third quarter of 2017 as a result of this transaction.
The Notes have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws and may not be offered or sold in the United States absent a registration or an applicable exemption from registration. A copy of ILG’s press release announcing the issuance of the Notes is attached as Exhibit99.1 to this report.
ITEM 9.01.Financial Statements and Exhibits.
(d) Exhibits to this Form8-K
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ExhibitNo. |
Description |
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99.1 |
Press Release dated September22, 2017 |