Marriott Vacations wraps $900 million term loan at Libor plus 225 bps

By Sara Rosenberg

New York, Aug. 10 – Marriott Vacations Worldwide Corp. lowered pricing on its $900 million seven-year covenant-light term loan B to Libor plus 225 basis points from talk in the range of Libor plus 250 bps to 275 bps, according to a market source.

The term loan still has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

The company’s $1.5 billion of credit facilities (Baa3/BBB-) also include a $600 million five-year revolver.

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Deutsche Bank Securities Inc., Wells Fargo Securities LLC and Credit Suisse Securities (USA) LLC are the lead banks on the deal that allocated on Thursday.

Proceeds will be used to help fund the acquisition of ILG for $14.75 in cash and 0.165 of a share of Marriott Vacations common stock for each ILG share. The transaction has an implied equity value of about $4.7 billion.

Other funds for the transaction will come from $750 million of new senior notes.

Closing is expected in the second half of 2018, subject to customary conditions, including regulatory approvals and approval by shareholders of both companies.

Marriott Vacations is an Orlando, Fla.-based pure-play vacation ownership company. ILG is a Miami-based provider of vacation experiences.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.