Marriott Vacations talks $750 million eight-year notes in 6¾% area, pricing Thursday

By Paul A. Harris

Portland, Ore., Aug. 9 – Marriott Vacations Worldwide Corp. talked its $750 million offering of eight-year senior notes (S&P: BB-) to yield in the 6¾% area, according to market sources.

Official talk comes wide of initial guidance that was set in the 6½% area, a trader said.

Books close at 2 p.m. ET Thursday and the Rule 144A and Regulation S deal is set to price thereafter.

BofA Merrill Lynch, JP Morgan Securities LLC, SunTrust Robinson Humphrey, Deutsche Bank Securities Inc., Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are the joint bookrunners.

The notes come with three years of call protection.

The issuing entity will be Marriott Ownership Resorts, Inc., a wholly owned subsidiary of Marriott Vacations Worldwide.

The Orlando, Fla.-based vacation ownership company plans to use the proceeds, along with new credit facilities and cash on hand, to help fund its acquisition of ILG, Inc., a Miami-based operator of vacation resorts and clubs, and to repay debt under ILG’s revolving credit facility.

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