Travel + Leisure Co. Completes $325 Million Term Securitization
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term securitizationfinancial
Term securitization is the process of pooling similar loans or receivables (like mortgages, car loans, or credit-card debt) and converting them into tradable securities with a defined maturity date. Think of it as bundling many small IOUs into a single bond that investors can buy or sell; it matters because it changes how cash flows, risk, and return are packaged, affecting yield, credit exposure, and liquidity for investors.
asset-backed notesfinancial
Asset-backed notes are investment papers that pay investors from the income produced by a pooled set of assets, such as loans, leases, or receivables. Think of buying a slice of a fruit basket where your returns come from sales of the fruit; the value and safety of the notes depend on how healthy the underlying assets are and how the payments are prioritized, so investors watch expected returns, default risk and liquidity closely.
advance ratefinancial
The advance rate is the percentage of an asset’s appraised or stated value that a lender is willing to loan against, commonly used for receivables, inventory, or property. For investors it shows how much immediate cash a company can raise from its assets — like the share of value a pawnbroker will lend you — and affects liquidity, borrowing capacity and perceived credit risk.
rule 144aregulatory
Rule 144A is a regulation that makes it easier for companies to sell private bonds to large investors without going through all the usual rules that apply to public sales. It matters because it helps companies raise money more quickly and privately, often attracting big investors looking for special deals.
regulation sregulatory
Regulation S is a set of rules that allows companies to sell securities (like shares or bonds) to investors outside the United States without having to follow all U.S. securities laws. It matters because it makes it easier for companies to raise money from international investors while still complying with U.S. regulations.
ORLANDO, Fla.--(BUSINESS WIRE)--
Travel + Leisure Co. (NYSE:TNL) announced today it completed a term securitization transaction involving the issuance of $325 million in principal amount of asset-backed notes with an overall weighted average coupon of 5.11%. The advance rate for this transaction was 98.00%.
“This transaction reflects the consistency of our platform and our ability to access capital even in a more volatile market environment,” said Erik Hoag, Chief Financial Officer of Travel + Leisure Co. “We’re pleased with both the execution and the terms achieved, which strengthen our liquidity and position us well as we move through 2026.”
Sierra Timeshare 2026-1 Receivables Funding LLC issued $150 million of Class A Notes, $58 million of Class B Notes, $70 million of Class C Notes, and $47 million of Class D Notes. The Class A Notes have a coupon of 4.56%, the Class B Notes have a coupon of 4.80%, the Class C Notes have a coupon of 5.19%, and the Class D Notes have a coupon of 7.10%.
Sierra Timeshare 2026-1 Receivables Funding LLC is an indirect subsidiary of Travel + Leisure Co. The transaction was completed in reliance upon Rule 144A and Regulation S as a placement of securities not registered under the Securities Act of 1933, as amended, or any state securities law. All of such securities having been sold, this announcement of their sale appears as a matter of record only.
About Travel + Leisure Co.
Travel + Leisure Co. (NYSE: TNL) is a leading leisure travel company, providing more than six million vacations to travelers around the world every year. The company operates a diverse portfolio of vacation ownership, travel club, and lifestyle travel brands designed to meet the needs of the modern leisure traveler, whether they’re traversing the globe or enjoying destinations closer to home. This includes experiential brands such as Sports Illustrated Resorts, Eddie Bauer Adventure Club, Margaritaville Vacation Club, and Accor Vacation Club, as well as cornerstone brands, Club Wyndham, WorldMark, and RCI. With hospitality and responsible tourism at its heart, the company’s more than 19,000 dedicated associates worldwide help fulfill its mission to put the world on vacation. Learn more at travelandleisureco.com.
