From the Wires
Westgate Completes Another Major Financing This Year
By: PR Newswire
Nov. 20, 2012 07:40 AM
ORLANDO, Fla., Nov. 20, 2012 /PRNewswire/ -- Westgate Resorts, a leader in the timeshare and destination resort industries, recently closed a $221 million securitization. Over the past six months, Westgate Resorts has been able to raise more than $420 million by issuing securitizations through the capital markets that were sold to a large number of new investors to the company, including money funds, insurance companies, and hedge funds. The weighted average cost of the securitizations were less than the previous floating rate expenses and have allowed Westgate to lock in fixed-rate capital while eliminating refinancing risk on these portfolios. This latest financing follows a $35 million Revolving Senior Warehouse Facility with Capital One Bank and a $165 million securitization that Westgate completed earlier this year.
"Westgate is operating at the highest profit levels in the history of the company," said David A. Siegel, Westgate Resorts' President and Chief Executive Officer. "We are honored the financial markets have recognized the strength of our company and the viability of the timeshare industry."
Westgate, which acquires, develops, markets and manages vacation ownership properties, is one of the largest privately-owned timeshare companies in the world. This securitization along with the previous $165 million securitization was used to pay down existing debt and provide additional liquidity for the company. In addition, the four-year facility provided by Capital One Bank will be used to finance notes receivable arising from the sale of vacation ownership intervals at Westgate's resort properties.
"Our team has done a tremendous job of delivering a high-quality product with the highest sales and marketing efficiencies in the timeshare industry," added David. "This has truly been a team effort that required the dedication and support of all of our valued Westgate team members."
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