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Marriott Vacations settles exchange offer related to ILG purchase

Marriott Vacations Worldwide Corp. on Sept. 4 completed the exchange offer by its wholly owned subsidiary, Marriott Ownership Resorts Inc., in connection with the Orlando-based vacation property provider's acquisition of Miami-based ILG Inc.

The amended offer was for 5.625% senior notes due 2023 issued by Interval Acquisition Corp., a unit of ILG, in exchange for the same amount of notes, with the same maturity, to be issued by Marriott Ownership.

The exchange offer expired at 5:00 p.m. ET on Aug. 30, with $88.2 million in aggregate principal amount of the existing IAC notes validly tendered and not withdrawn, according to the SEC filing.

Marriott paid $10.00 in cash per $1,000 principal amount of the existing IAC notes, or about $881,650. Approximately $262 million in aggregate principal amount of existing IAC notes remained outstanding.

Following the transaction, Marriott Vacations, Marriott Ownership and IAC entered into a credit agreement with JPMorgan Chase Bank on Aug. 31 for a $900 million term loan facility and a $600 million revolving credit facility, including letter of credit sub-facilities of $75 million.

The term loan facility will bear interest at a floating rate plus an applicable margin that varies from 1.25% to 2.25% depending on the type of loan with the corresponding base rate selected by Marriott, its subsidiaries and IAC.