Quarterly report pursuant to Section 13 or 15(d)

Debt (Tables)

v3.21.2
Debt (Tables)
9 Months Ended
Sep. 30, 2021
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
The Company’s indebtedness consisted of (in millions):
September 30,
2021
December 31,
2020
Non-recourse vacation ownership debt: (a)
Term notes (b)
$ 1,505  $ 1,893 
USD bank conduit facility (due October 2022) (c)
314  168 
AUD/NZD bank conduit facility (due April 2023) (d)
138  173 
Total $ 1,957  $ 2,234 
Debt: (e)
$1.0 billion secured revolving credit facility (due May 2023) (f)
$ —  $ 547 
$300 million secured term loan B (due May 2025) (g)
289  291 
$250 million 5.625% secured notes (due March 2021)
—  250 
$650 million 4.25% secured notes (due March 2022) (h)
650  650 
$400 million 3.90% secured notes (due March 2023) (i)
402  402 
$300 million 5.65% secured notes (due April 2024) 299  299 
$350 million 6.60% secured notes (due October 2025) (j)
345  344 
$650 million 6.625% secured notes (due July 2026) 642  641 
$400 million 6.00% secured notes (due April 2027) (k)
407  408 
$350 million 4.625% secured notes (due March 2030) 345  345 
Finance leases
Total $ 3,386  $ 4,184 
(a)Represents non-recourse debt that is securitized through bankruptcy-remote special purpose entities (“SPEs”), the creditors of which have no recourse to the Company for principal and interest. These outstanding borrowings (which legally are not liabilities of the Company) are collateralized by $2.25 billion and $2.57 billion of underlying gross VOCRs and related assets (which legally are not assets of the Company) as of September 30, 2021 and December 31, 2020.
(b)The carrying amounts of the term notes are net of deferred financing costs of $16 million and $21 million as of September 30, 2021 and December 31, 2020.
(c)The Company has a borrowing capacity of $800 million under the USD bank conduit facility through October 2022. Borrowings under this facility are required to be repaid as the collateralized receivables amortize but no later than November 2023.
(d)The Company has a borrowing capacity of 250 million Australian dollars (“AUD”) and 48 million New Zealand dollars (“NZD”) under the AUD/NZD bank conduit facility through April 2023. Borrowings under this facility are required to be repaid no later than May 2025.
(e)The carrying amounts of the secured notes and term loan are net of unamortized discounts of $14 million and $16 million as of September 30, 2021 and December 31, 2020, and net of unamortized debt financing costs of $6 million and $7 million as of September 30, 2021 and December 31, 2020.
(f)The weighted average effective interest rate on borrowings from this facility were 3.19% and 3.02% as of September 30, 2021 and December 31, 2020. In late March 2020, the Company drew down its $1.0 billion secured revolving credit facility as a precautionary measure due to COVID-19. As of September 30, 2021, these borrowings have been repaid. On October 22, 2021, the Company renewed this facility, extending the commitment period through October 2026. See Note 25—Subsequent Events for additional details.
(g)The weighted average effective interest rate on borrowings from this facility was 2.39% and 2.93% as of September 30, 2021 and December 31, 2020.
(h)Includes less than $1 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020.
(i)Includes $2 million and $3 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020.
(j)Includes $4 million and $5 million of unamortized losses from the settlement of a derivative as of September 30, 2021 and December 31, 2020.
(k)Includes $10 million and $11 million of unamortized gains from the settlement of a derivative as of September 30, 2021 and December 31, 2020.
Summary Of Outstanding Debt Maturities
The Company’s outstanding debt as of September 30, 2021, matures as follows (in millions):
Non-recourse Vacation Ownership Debt Debt Total
Within 1 year $ 292  $ 656  $ 948 
Between 1 and 2 years 484  407  891 
Between 2 and 3 years 191  303  494 
Between 3 and 4 years 192  280  472 
Between 4 and 5 years 208  987  1,195 
Thereafter 590  753  1,343 
$ 1,957  $ 3,386  $ 5,343 
Summary Of Available Capacity Under Borrowing Arrangements
As of September 30, 2021, available capacity under the Company’s borrowing arrangements was as follows (in millions):
Non-recourse Conduit Facilities (a)
Revolving
Credit Facilities (b)
Total capacity $ 1,017  $ 1,000 
Less: Outstanding borrowings 452  — 
Less: Letters of credit —  51 
Available capacity $ 565  $ 949 
(a)Consists of the Company’s USD bank conduit facility and AUD/NZD bank conduit facility. The capacity of these facilities is subject to the Company’s ability to provide additional assets to collateralize additional non-recourse borrowings.
(b)Consists of the Company’s $1.0 billion secured revolving credit facility.