Marriott Vacations reduces coupon on term loan credit agreement in Q4

By Devika Patel

Knoxville, Tenn., Feb. 27 – Marriott Vacations Worldwide Corp. replaced its warehouse facility last quarter and also reduced the interest rate on its term loan agreement by 50 basis points, bringing the company’s weighted average cost of debt to 4.7%.

“We replaced our warehouse facility during the quarter, increasing its capacity to $350 million,” executive vice president and chief financial and administrative officer John E. Geller Jr. said on the company’s fourth quarter and year ended Dec. 31, 2019 earnings conference call on Thursday.

“We also amended our existing term loan credit agreement, reducing the interest rate by 50 basis points, saving us more than $4 million annually.

“This brings our weighted average cost of our corporate debt to approximately 4.7% at the end of 2019,” he said.

Adjusted EBITDA was $207 million for the fourth quarter and $758 million for the full year.

On Dec. 31, 2019, cash and cash equivalents totaled $287 million.

The company had $4.1 billion in debt outstanding, net of unamortized debt issuance costs, at the end of the year.

As of Dec. 31, 2019, the company’s debt to adjusted EBITDA ratio was 2.4x.

Orlando-based Marriott Vacations offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services.

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