• Travel + Leisure Co. completes a $300 million securitization transaction at a 5.10% weighted average coupon.
• The transaction includes asset-backed notes from Sierra Timeshare 2025-2 Receivables Funding LLC, an indirect subsidiary.
• Strong investor demand allowed for the tightening of spread levels, enhancing the company’s liquidity position.

Travel + Leisure Co. (TNL, Financial) has announced the completion of a $300 million term securitization transaction. The deal, which exhibits the strength and resilience of the company’s business model, involved the issuance of asset-backed notes with an overall weighted average coupon of 5.10%. The transaction’s advance rate stood impressively at 98.00%.

Commenting on the transaction, Chief Financial Officer Erik Hoag stated, “This transaction once again demonstrates the strength of our business model and our ability to continue to access capital. The strong investor demand allowed us to tighten spread levels across the capital structure, enabling us to achieve a pricing with an all-in coupon of 5.10%, the tightest level seen since early 2022.”

The notes were issued by Sierra Timeshare 2025-2 Receivables Funding LLC, an indirect subsidiary of Travel + Leisure Co. The transaction comprised $143 million of Class A Notes with a 4.72% coupon, $67 million of Class B Notes at 4.93%, $59 million of Class C Notes at 5.32%, and $31 million of Class D Notes at 6.79%.

The completion of this transaction serves to bolster Travel + Leisure Co.’s liquidity position. As a diversified leisure travel company, Travel + Leisure Co. (TNL, Financial) continues to provide more than six million vacations annually across a portfolio of vacation ownership, travel clubs, and lifestyle travel brands.