Wyndham Destinations driving by with $500 million six-year bullet; initial talk 7% area

By Paul A. Harris

Portland, Ore., July 20 – Wyndham Destinations, Inc. plans to price a $500 million offering of senior secured bullet notes due July 31, 2026 (existing ratings Ba3/ BB-/BB+) in a Monday drive-by following a late-morning conference call with investors, according to market sources.

Initial talk has the deal coming to yield in the 7% area, a trader said.

BofA Securities Inc. is the left bookrunner. Deutsche Bank Securities Inc., J.P. Morgan Securities LC, Barclays, Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, MUFG, Scotia Capital (USA) Inc., SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are the joint bookrunners.

HSBC Securities (USA) Inc., Comerica Securities Inc. and U.S. Bancorp Investments Inc. are the co-managers.

The Rule 144A and Regulation S for life notes become callable at par on April 30, 2026. They are otherwise non-callable.

The Orlando-based timeshare company plans to use the proceeds for general corporate purposes, which may include debt repayment under its secured revolver and future repayment of its 5 5/8% secured notes due March 2021.

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