ILG
#<UNK>, our authorization was for $100 million and we purchased back $61 million.
As you recall also we have a constrain due the RMT that precluded us ---+ we have that limitation of approximately 10% and that $100 is roughly ---+ depending on stock price ---+ is roughly half of that amount.
So we will reevaluate ---+ the Board will reevaluate after we run through this authorization.
We have been comfortable in the high 2s range.
I believe right now we are probably our around 1.8 net debt, 1.7, 1.8 net date debt ratio so we have room that we are comfortable operating in.
So obviously we are going to look at all the various alternatives.
We always do.
So when we take a look at our capital deployment, obviously we have a lot of projects that we are working on.
We have obviously the dividend, stock buyback and potential acquisitions.
So we will look at all those things as we move through the year.
So the combined business if you consider the whole quarter, about 50-50 with as you know the HVO has a higher percentage of new buyers and Vistana a higher percentage of existing owners.
But the goal for Vistana is to reach a 50-50, that is our target but the combined business is about 50-50 today.
That is a primary component, yes.
That is mostly it along with the purchase accounting.
I think you can take from it that we are comfortable with the range.
Yes, originally that hotel in Cabo was destroyed in a hurricane.
The original plan was to build it back as a hotel and then convert it over time and so that would have gone into the CapEx.
What we decided to do, the team decided to do to build it back all at once as a timeshare resort, more efficient and so that was the major part of the shift in those pieces.
That was that same thing I just said, it went from ---+.
From one spot to another.
I will take the integration.
The teams have known each other for a long time, we have worked together as partners in the industry for a long time and I think that the culture is a great fit.
We enjoy working with the team at Vistana and we look forward to further integration obviously over time.
It hasn't been a long time but we have already started selling as I said in my prepared remarks the Vistana team at their property selling an upgraded Interval International membership.
We are talking about sharing inventory through the distribution center that distribution points that Interval International has.
We've got technology that we have employed and are continuing to look at so we are working together as a team and we feel good about things moving forward.
<UNK>, on that securitization timing in our guidance, we would assume that it would happen in the second half.
In the marketplace, it seems pretty robust and we are seeing sub 3% interest rates.
The marketplace and the purchasers like to know that that you are going to become periodic and recurring issuer and we would like to target consistent amounts going forward so 350 is probably our sweet spot.
Yes, it is three components.
There are a couple of hotels that were sold that we managed that we did not encumber so we lost those management agreements.
We also exited low RevPAR contracts, we talked about that I think it was last quarter.
And there are more rooms out for renovation so it is a combination of all of those.
Yes, there are a lot of legal and technical initiatives going on around it.
We are on track right now to move forward with that.
The closing with Vistana is helpful, their Sheraton Flex is very similar to what we are going to be doing with HVO.
The thing about the transition we don't expect lots of issues with the transition obviously there are learning curves.
But they've always sold a points-based system even though it might have been a preference product where you got (inaudible) specific product, a location.
You were still getting a points-based program which was part of the sales.
So this just provides them with ownership at a group of properties as opposed to one but the movement around the system is very similar so I think that might be a difference between others that have had more difficulty.
No, the beauty of having the system already sold where you can go around the system through the exchange program ---+ and I mean the proprietary branded exchange program ---+ is that a new product can be sold and people that had bought the other do not have to convert in to move around the system.
They already are moving around the system.
Well, their purported interest in matters of corporate governance is directly related to their union's attempt to organize two properties managed by Aqua Aston.
We view the recent press release as nothing more than a tactic to bring additional pressure on us with respect to the union's Hawaii organizing process.
Thanks, operator.
We are really excited about the future of ILG.
I want to thank you all for your questions and participation on today's call.
We appreciate your continued interest in ILG.
