Wyndham Destinations aims for 2.25x to 3x leverage in two years

By Devika Patel

Knoxville, Tenn., June 4 – Wyndham Destinations Inc. plans to get its leverage ratio within its target range of 2.25x to 3x within the next two years from its current level of 3.2x.

“We’re [levered] at about 3.2x,” executive vice president and chief financial officer Michael Hug said at the 2018 Goldman Sachs Lodging, Gaming, Restaurant and Leisure Conference in New York on Monday.

“Our target is 2.25x to 3x.

“We’ll be able to get to that within the next 18 to 24 months.

“There’s some moderate debt repayments but also primarily through growing EBITDA.

“That 2.25x to 3x is what we think is the right level,” Hug said.

The company expects to generate up to $600 million in free cash flow on average in the next four years.

“We’ll generate on average over the next four years $500 to $600 million in free cash flow,” Hug said.

Wyndham is a Parsippany, N.J.-based vacation ownership and exchange company.

© 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.