A company spokesperson tells GlobeSt the new interest rate of 5.69% represents a significant savings to the company; although, she was unable to provide specifics.
Trendwest says most of the contracts sold in the offering "had previously been sold to our receivables warehouse facility, TW Holdings III." Since last November, when the company's share price hit its 52-week low of $10.0833, the company experienced a steady surge to its most-recent 52-week high of $29.84 at the beginning of May.
For the six months ended 6/30/01, revenues increased 48% to $229.9 million. Net income rose 25% to $25.8 million. Analysts say the upswing in revenues was a reflection of increased sales. As of June 30th, Trendwest had 45 sales offices and over 2,350 condominium units in 44 resorts throughout the U.S., British Columbia, Mexico, Fiji and Australia.
However, stepping in line with the national economy, Trendwest's common stock dipped at the beginning of summer and had since bounced about in the $23-$26/ss range. Yesterday, as the markets re-opened following last week's national tragedy, the stocks of companies in leisure industries were struck like lightening rods in a thunder storm. Disney fell 17.3% hit Disney, dropping $4.08 per share to $19.50. Royal Caribbean Cruise was slammed, its stock plummeting 39.93%, or $8.51, to end the day at $12.80.
Trendwest, however, was able to breathe a sigh of relief, at least for the time being. Its common stock shed a mere 3.19% of its value, closing at $22.75, or $0.75 less than its opening price.
Just last month, Trendwest announced it was building a new destination resort near South Lake Tahoe, Nevada. Trendwest's spokesperson says construction will continue uninterrupted, with opening expected in spring 2002. Phase one of that 11-acre project has Trendwest putting up a lodge and 110 units in six residential units.
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