BULLETIN: Cendant Corp. to Acquire Shares Outstanding of Trendwest Resorts Inc.

Cendant Corp. (BBB/Negative/--) announced that it intends to acquire all of the shares outstanding of Trendwest Resorts Inc., a developer and operator of timeshare resort properties. The transaction will be financed with equity. Standard&Poor's says that the transaction will not affect the ratings of Parsippany, N.J.-based Cendant, or its wholly owned subsidiary, PHH Corp. (A-/Negative/A-2). The approximately $1 billion transaction is stock financed, however Cendant will assume about $74 million in net debt. In addition, Trendwest had about $529 million in off-balance-sheet securitized borrowings at Dec. 31, 2001. While most of these borrowings are nonrecourse to Trendwest, they represent an ongoing financing need of the business that must be met throughout changing market cycles. Standard&Poor's expects

...Cendant Corp. (###/Negative/--) announced that it intends to acquire all of the shares outstanding of Trendwest Resorts Inc., a developer and operator of timeshare resort properties. The transaction will be financed with equity. Standard & Poor's says that the transaction will not affect the ratings of Parsippany, N.J.-based Cendant, or its wholly owned subsidiary, PHH Corp. (A-/Negative/A-2). The approximately $1 billion transaction is stock financed, however Cendant will assume about $74 million in net debt. In addition, Trendwest had about $529 million in off-balance-sheet securitized borrowings at Dec. 31, 2001. While most of these borrowings are nonrecourse to Trendwest, they represent an ongoing financing need of the business that must be met throughout changing market cycles. Standard & Poor's expects that upon closing of the Trendwest transaction, Cendant's Trendwest, Fairfield, and Equivest timeshare businesses will increase to about 13% of Cendant's cash flow (excluding PHH businesses),...

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