SECURITIZED DEBT

3 Months Ended

Mar. 31, 2020



12.	SECURITIZED DEBT

The following table provides detail on our securitized debt, net of unamortized debt discount and issuance costs.



($ in millions)	At March 31, 2020			At December 31, 2019
Vacation ownership notes receivable securitizations, gross⁽¹⁾	$	1,706		$	1,850
Unamortized debt discount and issuance costs	(16		)	(18		)
	1,690			1,832

Warehouse Credit Facility, gross⁽²⁾	219			21
Unamortized debt issuance costs	(2		)	(2		)
	217			19

Other	19			20
	$	1,926		$	1,871

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⁽¹⁾	Interest rates as of March 31, 2020 range from 2.2% to 4.4%, with a weighted average interest rate of 2.9%


⁽²⁾	Effective interest rate as of March 31, 2020 was 2.3%

All of our securitized debt is non-recourse to us. See Footnote 16 “Variable Interest Entities” for a discussion of the collateral for the non-recourse debt associated with our securitized debt.

The following table shows scheduled future principal payments for our securitized debt as of March 31, 2020.



	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Other		Total
($ in millions)	Vacation Ownership Notes Receivable Securitizations		Warehouse Credit Facility		Other		Total
Payments Year
2020, remaining	$	133	$	8	$	1	$	142
2021	180		12		2		194
2022	183		14		2		199
2023	186		185		2		373
2024	186		—		3		189
Thereafter	838		—		9		847
	$	1,706	$	219	$	19	$	1,944

Vacation Ownership Notes Receivable Securitizations

Each of the securitized vacation ownership notes receivable transactions contains various triggers relating to the performance of the underlying vacation ownership notes receivable. If a pool of securitized vacation ownership notes receivable fails to perform within the pool’s established parameters (default or delinquency thresholds vary by transaction), transaction provisions effectively redirect the monthly excess spread we would otherwise receive from that pool (attributable to the interests we retained) to accelerate the principal payments to investors (taking into account the subordination of the different tranches to the extent there are multiple tranches) until the performance trigger is cured. During the first quarter of 2020, and as of March 31, 2020, no securitized vacation ownership notes receivable pools were out of compliance with their respective established parameters. As of March 31, 2020, we had 12 securitized vacation ownership notes receivable pools outstanding.

As the contractual terms of the underlying securitized vacation ownership notes receivable determine the maturities of the non-recourse debt associated with them, actual maturities may occur earlier than shown above due to prepayments by the vacation ownership notes receivable obligors.

Warehouse Credit Facility

Our $350 million warehouse credit facility (the “Warehouse Credit Facility”), allows for the securitization of vacation ownership notes receivable on a revolving non-recourse basis through December 20, 2021. During the first quarter of 2020, we securitized vacation ownership notes receivable under our Warehouse Credit Facility. The carrying amount of the vacation ownership notes receivable securitized was $240 million. The average advance rate was 84 percent, which resulted in gross proceeds of $202 million. Net proceeds were $201 million due to the funding of reserve accounts of $1 million.

Subsequent to the end of the first quarter of 2020, we amended our Warehouse Credit Facility to increase the borrowing capacity by $181 million, to $531 million. The revolving period for the existing $350 million remains the same and will terminate in December 2021, if not renewed. The revolving period for the additional $181 million portion will terminate in March 2021, if not renewed. As part of this amendment, the interest rate increased from primarily LIBOR plus 1.1% to primarily LIBOR plus 1.4%.