MV Worldwide announced pricing of $350 million of 4.75 percent Senior Notes. I'm a history major. Can someone explain what - if anything - this has to do with owners? I'm always concerned they're going to sell this entity to someone else. Thanks. And, remember. History major.
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MVC Notes [Marriott Vacations Worldwide - VAC - investor info]
- Thread starter Bodie
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Marriott:
Maui Ocean Club
Waiohai Beach Club
Barony Beach Club
Abound ClubPoints
HGVC:
HGVC at Sea World
The news release from VAC says the following:
The Issuer intends to use the net proceeds from the Notes offering (i) to redeem all of the $139.9 million outstanding aggregate principal amount of 5.625% Senior Notes due 2023 issued by Interval Acquisition Corp., (ii) to redeem all of the $88.2 million outstanding aggregate principal amount of 5.625% Senior Notes due 2023 issued by us and ILG, LLC, (iii) to repay a portion of the outstanding borrowings under our $600.0 million revolving credit facility, (iv) to pay transaction expenses and fees in connection with each of the foregoing and (v) for general corporate purposes.
What all that means is when they borrowed a bunch of money a year or so ago to buy ILG, the interest rate on those notes was 5.625%. Now that interest rates are lower, VAC is essentially refinancing at least some of their existing debt to lower their interest cost from 5.625% to 4.75% and to repay a portion of the borrowings on their revolving credit line (converting it to fixed term debt).
The Issuer intends to use the net proceeds from the Notes offering (i) to redeem all of the $139.9 million outstanding aggregate principal amount of 5.625% Senior Notes due 2023 issued by Interval Acquisition Corp., (ii) to redeem all of the $88.2 million outstanding aggregate principal amount of 5.625% Senior Notes due 2023 issued by us and ILG, LLC, (iii) to repay a portion of the outstanding borrowings under our $600.0 million revolving credit facility, (iv) to pay transaction expenses and fees in connection with each of the foregoing and (v) for general corporate purposes.
What all that means is when they borrowed a bunch of money a year or so ago to buy ILG, the interest rate on those notes was 5.625%. Now that interest rates are lower, VAC is essentially refinancing at least some of their existing debt to lower their interest cost from 5.625% to 4.75% and to repay a portion of the borrowings on their revolving credit line (converting it to fixed term debt).