By Paul A. Harris
Portland, Ore., Sept. 17 – Marriott Vacations Worldwide Corp. priced an upsized $350 million issue of 8.25-year senior notes (Ba3/BB-) at par to yield 4¾% in a quick-to-market Tuesday trade, according to market sources.
The issue size was increased from $300 million.
The yield printed in the middle of yield talk in the 4¾% area.
The notes were sold via Marriott Ownership Resorts, Inc.
J.P. Morgan Securities LLC, BofA Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc. were the joint bookrunners.
The vacation company plans to use the proceeds to redeem all of the outstanding $139.9 million of Interval Acquisition Corp. 5 5/8% senior notes due 2023, as well as to redeem all of the outstanding $88.2 million of Marriott Ownership/ILG, LLC 5 5/8% senior notes due 2023, to pay down the company's $600 million revolving credit facility and for general corporate purposes.
Orlando-based Marriott Vacations offers vacation ownership, exchange, rental and resort and property management, along with related businesses, products and services.
| Issuer: | Marriott Ownership Resorts, Inc.
|
| Amount: | $350 million, increased from $300 million
|
| Maturity: | Jan. 15, 2028
|
| Securities: | Senior notes
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., SunTrust Robinson Humphrey Inc., Wells Fargo Securities LLC, Credit Suisse Securities (USA) LLC and Deutsche Bank Securities Inc.
|
| Coupon: | 4¾%
|
| Price: | Par
|
| Yield: | 4¾%
|
| Spread: | 297 bps
|
| Call protection: | Three years
|
| Trade date: | Sept. 17
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S with registration rights
|
| Price talk: | 4¾% area
|
| Marketing: | Quick to market
|
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