By Paul A. Harris
Portland, Ore., Aug. 9 – Marriott Vacations Worldwide Corp. priced a $750 million issue of eight-year senior notes (S&P: BB-) at par to yield 6½% on Thursday, according to a market source.
The yield came 12.5 basis points inside the tight end of yield talk that was set in the 6¾% area but in the middle of initial price talk in the 6½% area, the source said.
BofA Merrill Lynch, JP Morgan Securities LLC, SunTrust Robinson Humphrey, Deutsche Bank Securities Inc., Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC were the joint bookrunners.
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.
| Issuer: | Marriott Ownership Resorts, Inc.
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| Amount: | $750 million
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| Tenor: | Eight years
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| Securities: | Senior notes
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| Bookrunners: | BofA Merrill Lynch, JP Morgan Securities LLC, SunTrust Robinson Humphrey, Deutsche Bank Securities Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC
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| Coupon: | 6½%
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| Price: | Par
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| Yield: | 6½%
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| Call protection: | Three years
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| Trade date: | Aug. 9
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| Rating: | S&P: BB-
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 6¾% area
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| Marketing: | Roadshow
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