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Diamond Resorts Files Plans for $200 Million IPO

Diamond Resorts International logoBREAKING:  LAS VEGAS, NV (June 14, 2013) — Diamond Resorts International (DRI) today filed with the SEC to raise up to $200 million in an initial public offering. The company plans to list on the NYSE under the symbol DRII.

DRI initially filed confidentially on January 24, 2013; today’s filing makes the company’s intentions public.

The number of shares to be offered and the price range for the offering have not yet been determined. According to the filing a portion of the shares will be issued and sold by DRI, and a portion will be sold by certain shareholders. DRI plans to use the net proceeds for working capital, debt repayment and for expansion into new geographic markets.

Credit Suisse, BofA Merrill Lynch, J.P. Morgan and Guggenheim Securities are the joint underwriters on the deal and Cantor Fitzgerald & Co. will be acting as co-manager.

The amount of money DRI says it plans to raise in its first IPO filings is used to calculate registration fees. The final size of the IPO could be different.

Diamond Resorts International®, with its network of more than 300 vacation destinations located in 33 countries throughout the continental United States, Hawaii, Canada, Mexico, the Caribbean, South America, Central America, Europe, Asia, Australia and Africa, provides members, owners and guests with choices and flexibility as they design their dream vacation, whether they’re traveling an hour away or around the world. Our hassle-free, relaxing vacations give guests a truly memorable experience every time, for a lifetime. For more information on Diamond Resorts International®, visit: DiamondResorts.com.

by Insidethegate.com staff writer

Jun 14th, 2013 | Category: ALL NEWS HEADLINES, Finance, USA & Canada | Tell a Friend Tell a Friend

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  1. Diamond is running a scam. It is ashamed that no one will intervene on behalf of all the former timeshare owners who actually owned real property and were lied to. They now own nothing. The points system is fraud. A owner of points..PAYS FOR THE RIGHT TO TRY, EVERY OTHER YEAR!!! TO -T-R-Y- TO GET ACCESS TO A UNIT. THEY DO NOT OWN ANYTHING. If their are no vacancies …then tough luck…perhaps you want to go somewhere else!

    They are being sold nothing…..they own nothing….it is fraud. They buy the right to make a reservation every other year…thats it. Anyone off the street can call and make a reservation…but these “owners”..can only TRY to make a reservation once every other year!! On top of that….they pay “maintenance fees” ( for what? they don’t own anything), presumably to maintain their right to TRY and make a reservation every other year!! And if they do not pay these fraudulent maintenance fees they can lose their points, but if they have already paid for the points in full.

    To be clear: You buy points at Diamond for let’s say $15k…and it entitles you to make a reservation ONCE EVERY OTHER YEAR..at a resort for let’s say 3-days. You are NOT GUARANTEED A RESERVATION!! In addition, you pay “Maintenance Fees” to maintain something you do not own…..you have not bought anything….no real property….only the right to TRY and make a reservation ONCE EVERY OTHER YEAR!! As long as you are paying for your points…your ‘points’ cannot be “repossessed”, for non-payment of ‘maintenance fees’ , however you can no longer call, ONCE EVERY OTHER YEAR, to TRY and get a reservation.

    Why would you pay anyone a penny for the right to TRY and make a reservation? The fact that their IPO documents do not make this clear….is FRAUD. Their business is based on Fraud and Deception. They even sell “upgrades”….which are more phony points which allow you to in theory stay for a longer time at a resort, but DOES NOT GUARANTEE YOU A RESERVATION!!!!

    YOU OWN NOTHING! YOU ARE PAYING FOR THE RIGHT TO PICK UP THE PHONE EVERY OTHER YEAR AND TRY TO GET A RESERVATION!!!

  2. http://blogs.mirror.co.uk/investigations/2011/04/diamond-resorts-sends-in-debt.html

    This is a scam..people have tried to get justice ..they are going to sell shares to the public? How is this legal if they lie about their business? If they are not truthful about how their business operates. They are running a scam!

  3. Fraud? Really? I’m not a big fan of points myself but to call DRI a fraud is nonsense. You apparently bought into The Club, which is a points based program, and you apparently bought an every other year program. Presumably you read your contract before you signed?

    Yes, you don’t own anything in the way of “real estate” with points, they’re basically a type of right-to-use program and just like any hotel or any timeshare exchange program it’s a first come first served basis. It must be frustrating to not be able to get the reservations where you want and I sympathize, but to call it a fraud or a scam is a real stretch. Maybe you need to plan farther ahead of time? Other timeshare companies that sell a points system include Hilton, Marriott, Disney, Starwood, Wyndham, Hyatt you name it. Are they all scams? I think not!!!!!!

  4. BD,

    Per your comment above:

    “…they’re basically a type of right-to-use program and just like any hotel or any timeshare exchange program it’s a first come first served basis. It must be frustrating to not be able to get the reservations where you want and I sympathize, but to call it a fraud or a scam is a real stretch. Maybe you need to plan farther ahead of time? …”

    That is exactly the point. NO one in their right mind would knowingly, willingly spend $50 let alone $5k, $10K, $20k etc…FOR THE PRIVILEGE of trying to get a room, in your words on a “…first come first serve basis…”! Why would anyone do that when they can call for free….for the same opportunity to get a reservation?? Furthermore….calling ahead of time is not the issue as they are sold on the lie, misrepresentation and deceit that they have access to a certain amount of time. KEEP IN MIND….THIS RIGHT TO GET A RESERVATION…ON A FIRST COME, FIRST SERVE BASIS …IS ONLY ONCE EVERY OTHER YEAR! So you are telling me that people knowingly, pay thousands of dollars to get what? NOTHING…nothing that the general public has for FREE! In fact they are paying to be at a disadvantage to the public, because the public not only can call to get a reservation ON A FRIST COME, FIRST SERVE BASIS for FREE!! THEY CAN DO IT “ANYTIME”…whereas the victims of this misrepresentation and fraud can only TRY to get a reservation ONCE EVERY OTHER YEAR!! It is foolish to think any sane person would with full knowledge and understanding BUY SOMETHING THAT THEY CAN GET FOR FREE!!!!