Interval Leisure Group, Inc. (NASDAQ: IILG) ("ILG") announced today that
it has given an irrevocable Notice of Redemption for all of its
outstanding 9.5% Senior Notes due 2016 (the "Senior Notes"). The Senior
Notes, which have an outstanding principal balance of $300 million, will
be redeemed on September 4, 2012, at 100% of the principal amount plus
accrued and unpaid interest to the redemption date. ILG intends to fund
the redemption through the use of its $500 million revolving credit
facility and cash on hand. On or after the date of redemption, the
Senior Notes will no longer be deemed outstanding, interest will cease
to accrue thereon and all rights of the holder of the Senior Notes shall
cease to exist, except for the right to receive the redemption price.
The Bank of New York Mellon is the trustee for the Senior Notes and is
serving as the paying agent for this transaction. Copies of the Notice
of Redemption and additional information relating to the redemption of
the Senior Notes may be obtained from The Bank of New York Mellon Trust
Company, N.A., 111 Sanders Creek Parkway, East Syracuse, New York 13057,
attention: Bondholder Relations, telephone: (800) 254-2826.
ILG expects to report approximately $17.9 million in non-cash, pre-tax
charges associated with redemption of the Senior Notes in the third
quarter of 2012. These charges will result from the write-off of
unamortized issuance costs and acceleration of the remaining original
This press release is for informational purposes only and is not an
offer to purchase, or the solicitation of an offer to purchase, the
About Interval Leisure Group
Interval Leisure Group (ILG) is a leading global provider of membership
and leisure services to the vacation industry. Headquartered in Miami,
Florida, ILG has more than 3,500 employees worldwide.
The company’s primary operating segment is Membership and Exchange,
which offers travel and leisure related products and services to about 2
million member families who are enrolled in various programs. Interval
International, the segment’s principal business, has been a leader in
vacation ownership exchange since 1976. With offices in 15 countries, it
operates the Interval Network of approximately 2,700 resorts in more
than 75 nations. ILG delivers additional opportunities for vacation
ownership exchange through its Trading Places International (TPI) and
Preferred Residences networks.
ILG also has a Management and Rental operating segment that includes
Aston Hotels & Resorts, Vacation Resorts International, and TPI. These
businesses provide hotel, condominium resort, timeshare resort, and
homeowners’ association management, as well as rental services, to
travelers and owners at more than 200 vacation properties, resorts and
club locations throughout North America.
More information about the Company is available at www.iilg.com.
Forward Looking Statements
This press release contains "forward-looking statements" within the
meaning of Section 21E of the Securities Exchange Act of 1934, as
amended, relating to: our future financial performance, our strategy,
anticipated financial position, liquidity and capital needs and other
similar matters. These forward-looking statements are based on
management's current expectations and assumptions about future events,
which are inherently subject to uncertainties, risks and changes in
circumstances that are difficult to predict.
Actual results could differ materially from those contained in the
forward-looking statements included herein for a variety of reasons
discussed in our filings with the SEC. Other unknown or unpredictable
factors that could also adversely affect our business, financial
condition and results of operations may arise from time to time. In
light of these risks and uncertainties, the forward-looking statements
discussed in this release may not prove to be accurate. Accordingly, you
should not place undue reliance on these forward-looking statements,
which only reflect the views of our management as of the date of this
press release. Except as required by applicable law, ILG does not
undertake to update these forward-looking statements.