NEW YORK (AP) ¿ Shares of Wyndham Worldwide Corp. gained Friday after the lodging company completed a $225 million sale of notes backed by its timeshare assets, which an analyst said may signal that the market for asset-backed securities is "coming back to life." Wyndham shares gained 26, or 2.3 percent, to $11.54 in afternoon trading. The stock has traded between $2.55 and $22.28 during the past 52 weeks. Late Thursday, the Parsippany, N.J.-based company said it completed a term securitization deal that involved issuing $225 million of investment grade asset-backed notes. The notes are backed by vacation ownership receivables originated by Wyndham subsidiaries. Friedman Billings Ramsey analyst C. Patrick Scholes, who noted that there was "strong demand" for the securitization, said the deal is a clear benefit for the company. The market for timeshare-backed securities has been essentially closed for the past year, which has cut off a key source of cash for new timeshare developments. "Of the companies we cover, (Wyndham) has the greatest need and urgency for a functioning securitization market as their timeshare business model has historically been dependent on the cash provided by securitizations," he said. He said the deal also signals that the market for asset-backed securities may be starting to rebound. Scholes maintained a "Market Perform" rating on the stock.
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