Debt & Non-recourse Debt

3 Months Ended

Mar. 31, 2020

Debt Disclosure [Abstract]

Debt & Non-recourse Debt

Note 11: Debt & Non-recourse Debt

Debt

The following table details our outstanding debt balance and its associated interest rates:

	March 31,			December 31,
($ in millions)	2020			2019
Debt(1)
Senior secured credit facilities:
Term loan with a rate of 2.709%, due 2023	$	185		$	187
Revolver with a weighted average rate of 2.597%, due 2023		760			320
Senior notes with a rate of 6.125%, due 2024		300			300
Other debt		27			27
		1,272			834
Less: unamortized deferred financing costs and discount(2)(3)		(6	)		(6	)
	$	1,266		$	828

⁽¹⁾ As of the three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 3.537 percent and 4.571 percent, respectively.

⁽²⁾ Amount includes deferred financing costs related to our term loan and senior notes of $1 million and $5 million, respectively, as of March 31, 2020 and December 31, 2019.

⁽³⁾ Amount does not include deferred financing costs of $5 million as of March 31, 2020 and December 31, 2019, relating to our revolving facility included in Other Assets in our condensed consolidated balance sheets.

During the three months ended March 31, 2020, we borrowed $495 million and repaid $57 million (including recurring payments) under the senior secured credit facilities with an interest rate based on one month LIBOR plus 1.75  percent.

During the first quarter of 2020, we entered into a pay-fixed/receive-variable interest rate swap agreement on our senior secured credit facility with a notional amount of $62 million.  The one-month LIBOR was effectively modified to a fixed rate of 0.62% through November 2023.  For the three months ended March 31, 2020, we recorded less than $1 million in accumulated other comprehensive income related to the hedge.

As of March 31, 2020 and December 31, 2019, we had $1 million of outstanding letters of credit under the revolving credit facility.  We were in compliance with all applicable financial covenants as of March 31, 2020.

Non-recourse Debt

The following table details our outstanding non-recourse debt balance and its associated interest rates:

	March 31,			December 31,
($ in millions)	2020			2019
Non-recourse debt(1)
Timeshare Facility with an average rate of 1.861%, due 2022	$	195		$	—
Securitized Debt with an average rate of 1.810%, due 2026		40			46
Securitized Debt with an average rate of 2.711%, due 2028		136			149
Securitized Debt with an average rate of 3.602%, due 2032		250			275
Securitized Debt with an average rate of 2.431%, due 2033		271			285
		892			755
Less: unamortized deferred financing costs(2)		(7	)		(8	)
	$	885		$	747

⁽¹⁾ As of three months ended March 31, 2020 and year ended December 31, 2019, weighted-average interest rates were 2.650 percent and 2.876 percent, respectively.

⁽²⁾ Amount relates to securitized debt only and does not include deferred financing costs of $2 million as of March 31, 2020 and $3 million as of December 31, 2019 relating to our Timeshare Facility which are included in Other Assets in our condensed consolidated balance sheets.

The Timeshare Facility is a non-recourse obligation with a borrowing capacity of $450 million and is payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. In January 2020, we amended the Timeshare Facility, temporarily changing certain covenant requirements. All other terms and borrowing capacity remained the same in both amendments. 

We are required to deposit payments received from customers on the timeshare financing receivables securing the Timeshare Facility and Securitized Debt into depository accounts maintained by third parties. On a monthly basis, the depository accounts are utilized to make required principal, interest and other payments due under the respective loan agreements. The balances in the depository accounts were $31 million and $26 million as of March 31, 2020 and December 31, 2019, respectively, and were included in Restricted cash in our condensed consolidated balance sheets.

Debt Maturities

The contractual maturities of our debt and non-recourse debt as of March 31, 2020 were as follows:

($ in millions)	Debt		Non-recourse Debt		Total
Year
2020 (remaining)	$	9	$	174	$	183
2021		11		161		172
2022		11		307		318
2023		918		112		1,030
2024		300		43		343
Thereafter		23		95		118
	$	1,272	$	892	$	2,164