Latest News
HomeHotels & LodgingStarwood completes sale of timeshare loans
Starwood contributed approximately $181m. in timeshare mortgages to the Issuer

Starwood completes sale of timeshare loans

On June 5th, Starwood Hotels & Resorts Worldwide, Inc. completed a private placement of approximately $125 million floating rate Timeshare Loan Backed Notes by SVO 2009-A VOI Mortgage Corporation with a commercial paper conduit. The floating rate will be swapped into a fixed rate of 8.0%. Starwood contributed approximately $181 million in timeshare mortgages to the Issuer and retained a 31 percent residual interest in the Issuer. Cash flow from the timeshare mortgages will be paid entirely to the holder of the Notes for the initial 12 to 24 months; thereafter, Starwood expects to begin receiving its return on its residual interest. Starwood expects that the securitization will result in a small loss on the sale as well as lost interest income for the second quarter and the balance of the year. The notes have not been and will not be registered under the Securities Act of 1933, as amended, or any state securities laws.


Co-Founder & Managing Director - Travel Media Applications | Website

Theodore is the Co-Founder and Managing Editor of TravelDailyNews Media Network; his responsibilities include business development and planning for TravelDailyNews long-term opportunities.