Marriott Vacations Prices Private Offering Of $500 Mln Senior Notes

(RTTNews) - Marriott Vacations Worldwide Corporation (VAC), a hospitality company, said on Tuesday that it has priced the private offering of $500 million, 3.25 percent convertible senior notes due 2027.

The company intends to use the net proceeds from the offering to pay the cost of the convertible note hedge transactions. The rest of the proceeds may be used to redeem all of Marriott Ownership Resorts 6.125 percent Senior Secured Notes due 2025 at a price equal to 103.063 percent of the principal amount.

It has also granted an option to the initial buyers to purchase up to an additional $75 million of the notes for settlement within a 13-day period beginning form the initial closing date.

The offering is expected to close on December 8.

The Notes will mature on December 15, 2027.

The initial conversion rate for the notes is 5.2729 shares of the company's common stock per $1,000 principal amount of notes, which is equivalent to an initial conversion price of around $189.65 per share of the firm's common stock.

This represents an approximately 32.5 percent conversion premium over the last reported sale price of $143.13 per share of the company's common stock on the NYSE on December 5.