Westgate Resorts, the premier developer and operator of themed resorts, raised US $140 million in new round of securitization. The latest financial transaction brings to a total of US $850 million raised by the company since April 2012. The proceeds of the deal would be used to pay off the existing debts and offer liquidty to the company.
Securitization refers to the financial practice of consolidating various kinds of contractual debts. These debts are then sold as bonds, collateralized mortgage obligations or pass-through securities to various investors.
The company said that US$700 million of the total amount raised involved securitization, which added another 25 new investors to Westgate. The remaining $150 million represented loans from four commercial banks.
David A. Siegel, Westgate CEO, said that the company is on pace to exceed the sales revenues for 2012. "We attribute our success to the outstanding experience we deliver our guests, and our industry leading sales and marketing efficiencies," he said.
Founded in 1980, Westgate today has luxury resorts in Florida, Utah, Nevada, South Carolina, Arizona, Mississippi, Virginia, Missouri and Tennessee. The resorts are renowned for their destination health spas, shopping outlets, restaurants and water parks and luxurious hotels.
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