Travel + Leisure Co. Closes $300 Million Asset-Backed Securitization at 6.18% Coupon
Travel + Leisure Co. (TNL) has completed a $300 million term asset-backed securitization with a weighted average coupon of 6.18% and a 98% advance rate. Across individual tranches spanning Class A through Class D, interest rate coupons ranged from 5.71% to 7.85%. The transaction brings the hospitality company's total asset-backed securitization issuance for 2026 to $925 million, with all deals maintaining the same 98% advance rate.
The successful debt offering secures predictable liquidity and locks in borrowing costs for the company's timeshare receivables financing program. High advance rates and pricing across multiple risk tiers demonstrate continued demand from fixed-income investors. Maintaining consistent capital market access helps fund ongoing loan originations to customers while supporting overall cash flow stability.
Investors will look to future quarterly disclosures for updates on timeshare loan origination growth, shifts in overall profit margins tied to funding costs, and any changes in advance rates or credit spreads on subsequent securitizations. Shares of Travel + Leisure Co. were unchanged at $62.99 following the announcement.
Key points
- Travel + Leisure Co. completed a $300 million term securitization with a weighted average coupon of 6.18%.
- The deal achieved a 98% advance rate, with coupon rates on Class A through Class D tranches ranging between 5.71% and 7.85%.
- Total asset-backed securitization issuance for the company in 2026 has reached $925 million, with each deal carrying a 98% advance rate.
- The transaction provides liquidity and funding cost certainty for the company's timeshare receivables program.
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What is the size and rate of Travel + Leisure Co.'s latest ABS deal?
Travel + Leisure Co. completed a $300 million term securitization featuring a weighted average coupon of 6.18% and a 98% advance rate.
How much asset-backed debt has Travel + Leisure Co. issued in 2026?
The company has completed $925 million in total asset-backed securitization issuance in 2026, with every transaction executed at a 98% advance rate.
What are the coupon rates across the tranches in the deal?
Coupons for Class A through Class D tranches range from 5.71% to 7.85%.