Vistana to get about $132 million in debt with Interval Leisure merger

By Sara Rosenberg

New York, Oct. 28 – Vistana Signature Experiences plans on getting about $132 million in new debt to fund a $132 million cash distribution in connection with its merger with Interval Leisure Group, company officials said in a conference call on Wednesday.

The merger will occur follow completion of the planned spin-off of Vistana from Starwood Hotels and Resorts Worldwide Inc.

Under the agreement Vistana, a wholly-owned subsidiary of Starwood is expected to be distributed tax-free to Starwood shareholders and simultaneously merge with a wholly-owned subsidiary of Interval Leisure.

The combination will result in Starwood shareholders owning about 55% of the combined company on a fully diluted basis, with existing shareholders of Interval Leisure owning around 45% of the combined company.

The transaction values Vistana at about $1.5 billion.

Net debt to adjusted EBITA is expected to be around 1.5 times post-close, excluding securitizations.

Closing is targeted for the second quarter of 2016, subject to customary closing conditions, including regulatory and Interval Leisure shareholder approvals.

Vistana is an Orlando, Fla.-based developer, marketer and manager of vacation ownership resorts. Interval Leisure is a Miami-based provider of non-traditional lodging.

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