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DEBT AND NON-RECOURSE DEBT
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
DEBT AND NON-RECOURSE DEBT DEBT AND NON-RECOURSE DEBT
Debt
The following table details our outstanding debt balance and its associated interest rates:
($ in millions)
Interest Rate
September 30, 2026December 31, 2025
Debt(1)
Senior secured credit facility
Term loan A due 2028
5.551 %$400 $400 
Term loan B due 2031
5.901 %880 887 
Term loan B due 2033
5.901 %850 851 
Revolver due 2030(2)
5.442 %490 130 
Senior notes due 2029
5.000 %850 850 
Senior notes due 2031
4.875 %500 500 
Senior notes due 2032
6.625 %900 900 
Other debt
76 85 
Total debt, gross4,946 4,603 
Less: unamortized deferred financing costs and discounts(3)
(61)(58)
Total debt, net$4,885 $4,545 
(1)As of September 30, 2026 and December 31, 2025, weighted-average interest rates were 5.751% and 5.691%.
(2)Unamortized deferred financing costs of $1 million and $3 million as of September 30, 2026 and December 31, 2025 related to our revolving facility are included in Other assets in our condensed consolidated balance sheets.
(3)Amount includes unamortized deferred financing costs of $51 million and $53 million as of September 30, 2026 and December 31, 2025. This amount also includes unamortized original issuance discounts of $10 million and $5 million as of September 30, 2026 and December 31, 2025.
Senior secured credit facility
On July 17, 2026, we refinanced our Term Loan B due 2028 with an amended $850 million Term Loan B due 2033. The Term Loan B pricing remained unchanged at SOFR plus 2.00%. As of September 30, 2026, we had $53 million of letters of credit outstanding under the revolving credit facility and $1 million outstanding backed by cash collateral. We were in compliance with all applicable maintenance and financial covenants and ratios as of September 30, 2026. As of September 30, 2026, we have $457 million remaining borrowing capacity under the revolver facility.
We primarily use interest rate swaps as part of our interest rate risk management strategy for our variable-rate debt. These interest rate swaps are associated with the SOFR-based senior secured credit facility. As of September 30, 2026, these interest rate swaps convert the SOFR-based variable rate on our senior secured credit facility to average fixed rates of 1.55% per annum with maturities between 2026 and 2028, for the balance on this borrowing up to the notional values of our interest rate swaps. As of September 30, 2026, the aggregate notional values of the interest rate swaps under our senior secured credit facility was $550 million. Our interest rate swaps have been designated and qualify as cash flow hedges of interest rate risk and recorded at their estimated fair value as an asset in Other assets in our condensed consolidated balance sheets. As of September 30, 2026 and December 31, 2025, the estimated fair value of our cash flow hedges was $19 million and $18 million. We characterize payments we make in connection with these derivative instruments as interest expense and a reclassification of accumulated other comprehensive loss for presentation purposes. We classify cash inflows and outflows from derivatives that hedge interest rate risk within operating activities in the unaudited condensed consolidated statements of cash flows.
The following table reflects the activity, net of tax, in Accumulated other comprehensive loss related to our derivative instruments during the nine months ended September 30, 2026:
Net unrealized gain on derivative instruments
Balance as of December 31, 2025
$14 
Other comprehensive loss before reclassifications, net
7 
Reclassifications to net income
(7)
Balance as of September 30, 2026
$14 
Senior Notes due 2032
The Senior Notes due 2032 are guaranteed on a senior secured basis by certain of our subsidiaries. We were in compliance with all applicable financial covenants as of September 30, 2026.
Senior Notes due 2029 and 2031
The Senior Unsecured Notes are guaranteed on a senior unsecured basis by certain of our subsidiaries. We are in compliance with all applicable financial covenants as of September 30, 2026.
Cash paid for interest on our corporate debt, net was $207 million and $221 million for the nine months ended September 30, 2026 and 2025.
Non-recourse Debt
The following table details our outstanding non-recourse debt balance and associated interest rates:
($ in millions)Weighted Average Interest RateSeptember 30, 2026December 31, 2025
Non-recourse debt(1)
Timeshare Facility due 2029(2)
5.007 %$550 $615 
Big Cedar Timeshare Facility due 2029
5.170 %25 — 
Securitized Debt due 2035 - 2045(3)
5.063 %2,346 2,106 
Quorum Purchase Facility due 2034
5.018 %2 4 
NBA Receivables Facility due 2031
5.394 %— 26 
Total non-recourse debt, gross2,923 2,751 
Less: unamortized deferred financing costs and discount(4)
(32)(35)
Total non-recourse debt, net$2,891 $2,716 
(1)As of September 30, 2026 and December 31, 2025, weighted-average interest rates were 5.054% and 5.019%.
(2)Unamortized deferred financing costs of $3 million as of September 30, 2026 relating to the Timeshare Facility and Big Cedar Timeshare Facility included in Other Assets in our consolidated balance sheet.
(3)Interest rates as of September 30, 2026 range from 1.410% to 6.614%.
(4)Amount includes unamortized deferred financing costs of $30 million for both periods September 30, 2026 and December 31, 2025, and unamortized discounts of $2 million and $5 million as of September 30, 2026 and December 31, 2025.
Timeshare Facility
The Timeshare Facility is a non-recourse obligation payable solely from the pool of timeshare financing receivables pledged as collateral and related assets. In May 2026, we renewed our Timeshare Facility agreement under new terms, which included increasing the facility size from $850 million to $1.0 billion, extending the commitment and maturity period to May 2028 and May 2029, respectively, and permitting to pledge as collateral certain Elara timeshare loans. Concurrently with the renewal, we terminated the Elara Timeshare Facility agreement assumed as a result of the Elara Acquisition. As of September 30, 2026, our Timeshare Facility has a remaining borrowing capacity of $450 million.
Big Cedar Timeshare Facility
On September 14, 2026, Big Cedar entered into the Big Cedar Timeshare Facility, a $200 million revolving receivables warehouse facility, with a commitment period through September 2028 and a maturity period through September 2029. In connection with the warehouse facility, we incurred $1 million in debt issuance costs. As of September 30, 2026, the Big Cedar Timeshare Facility has a remaining borrowing capacity of $175 million.
Securitized Debt
In April 2026, we completed a securitization of approximately $500 million of gross timeshare financing receivables and issued approximately $210 million of 4.67% notes, $161 million of 5.01% notes, $83 million of 5.36% notes and $46 million of 7.21% due February 2043. The advance rate for this transaction was 98%. The issued notes are backed by pledged assets, secured by first mortgages, first deeds of trust, membership interests or timeshare interests (other than a fee simple interest in real estate) and a letter of credit. The notes are a non-recourse obligation and are payable solely from the timeshare financing receivables pledged as collateral for the notes. The proceeds of the notes were used to pay down debt and for other general corporate purposes. Additionally, in connection with the securitization, we incurred $6 million in debt issuance costs.
In June 2026, we completed a securitization of approximately $300 million of gross timeshare financing receivables and issued approximately $119 million of 4.83% notes, $99 million of 5.10% notes, $51 million of 5.54% notes and $31 million of 6.00% due March 2045. The advance rate for this transaction was 98%. The issued notes are backed by pledged assets, secured by first mortgages, first deeds of trust, membership interests or timeshare interests (other than a fee simple interest in real estate) and a letter of credit. The notes are a non-recourse obligation and are payable solely from the timeshare financing receivables pledged as collateral for the notes. The proceeds of the notes were used to pay down in part some of our existing debt and for other general corporate purposes. Additionally, in connection with the securitization, we incurred $5 million in debt issuance costs.
As part of the Elara Acquisition, we assumed securitized debt which was collateralized by the acquired timeshare financing receivables. They have been aggregated for disclosure purposes as they are similar in nature to our historical securitized transactions.
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 $109 million and $142 million as of September 30, 2026 and December 31, 2025, and were included in Restricted cash in our condensed consolidated balance sheets.
NBA Receivables Facility
Recourse on the NBA Receivables Facility is generally limited to the greater of 15% of the outstanding borrowings and $5 million, subject to certain exceptions. During the third quarter of 2026, we terminated the NBA Receivables Facility.
Debt Maturities
The contractual maturities of our debt and non-recourse debt as of September 30, 2026 were as follows:
($ in millions)DebtNon-recourse DebtTotal
Year
2026 (remaining three months)$6 $156 $162 
202722 541 563 
2028430 439 869 
2029878 923 1,801 
2030515 276 791 
Thereafter3,095 588 3,683 
Total$4,946 $2,923 $7,869