Travel + Leisure completes third 2026 ABS issuance, bringing total to $925 million
Travel + Leisure Co. issued $300 million of asset‑backed notes in its third term securitization of 2026, raising its year‑to‑date ABS issuance to $925 million. The notes were sold by the indirect subsidiary Sierra Timeshare 2026‑3 Receivables Funding LLC with a weighted‑average coupon of 6.18% and a 98% advance rate. The offering was made under Rule 144A and Regulation S, meaning the securities were placed with qualified investors without registration under the 1933 Securities Act. CFO Erik Hoag said strong demand and tight spreads reflected confidence in the vacation business.
Why it matters
The additional $300 million of funding expands the company’s liquidity pool for its vacation‑ownership portfolio, potentially supporting future growth or refinancing needs. The high advance rate and low coupon suggest favorable financing terms for investors, which may improve the company’s cost of capital.
Key facts
- 1Travel + Leisure’s third term securitization of 2026 issued $300 million of asset‑backed notes. tradingview.com
- 2The transaction raised total ABS issuance for the year to $925 million. stocktitan.net
- 3Weighted‑average coupon on the $300 million notes was 6.18%. tradingview.com
- 4Advance rate for the $300 million issuance was 98%. investing.com
- 5Notes were sold by Sierra Timeshare 2026‑3 Receivables Funding LLC, an indirect subsidiary of Travel + Leisure. investing.com
- 6The offering was conducted under Rule 144A and Regulation S, a private placement exempt from registration under the Securities Act of 1933. investing.com
Summary written by AlphAI AI Desk from 3 of 3 sources. Not investment advice. Figures are as stated by the linked sources.