Summary
Marriott International, Inc. (MAR) announced on June 10, 2008, the completion of a securitization transaction involving a pool of approximately $300 million in timeshare mortgage loans. These loans were sold to Marriott Vacation Club Owner Trust 2008-1, which in turn issued $246 million in 7.198 percent Timeshare Loan Backed Notes to investors through a private placement. As a result of this transaction, Marriott received initial cash proceeds of approximately $240 million and retains a subordinated residual interest in the Trust, through which it anticipates realizing the remaining value of the mortgage loans over time. The company expects to recognize a gain of approximately $28 million in the second quarter of 2008 from these securitization activities. The issued notes are not registered under the Securities Act of 1933 and were offered in a private placement.
Key Highlights
- 1Marriott International completed a securitization of approximately $300 million in timeshare mortgage loans.
- 2The company sold these loans to Marriott Vacation Club Owner Trust 2008-1.
- 3$246 million in 7.198% Timeshare Loan Backed Notes were issued to investors via private placement.
- 4Marriott received initial cash proceeds of approximately $240 million.
- 5The company retains a subordinated residual interest in the Trust for potential future value realization.
- 6An estimated gain of $28 million is expected to be recognized in Q2 2008.
- 7The issued notes were offered in a private placement and are not registered under the Securities Act of 1933.