Despite the forecast that the coming months will still be stiffed for the timeshare industry and there’s an increasing number of owners who are trying to get out of their timeshare contracts, some companies continue to invest in such business. One of these companies is the Starwood Vacation Ownership VOI Mortgage Corp. which has announced that it is coming to market with $166 million in vacation ownership interest loan-backed notes Series 2009-B.
According to a presale report, the Standard & Poors assigned the bonds which are due in 2028 with a preliminary A rating. The SVO helped its case by overcollateralizing by 17 percent. The deal is scheduled to close this week and the bonds are expected to be one class and fixed-rate.
On the other hand, according to S&P’s presale filing, the preliminary rating assigned to SVO 2009-B VOI Mortgage Corp.'s vacation ownership interest loan-backed notes series 2009-B reflects their view of the credit enhancement available in the form of overcollateralization, a reserve account, and excess spread. Moreover, SVO operates vacation resorts and is a wholly owned subsidiary of Starwood Hotel & Resorts Worldwide, Inc.
Timeshare sales can be a very lucrative business. Despite of the several current owners who are getting rid of their timeshares while some even hire a timeshare transfer company such as the Transfer Smart, timeshares draw in a great deal of income because they essentially sell the same structure to several people with the price dependent on how much time each buyer will occupy the premises and whether it is during peak season.