Bluegreen Vacations Renews and Extends $40 Million Timeshare Receivables Loan
BOCA RATON, Fla.--(BUSINESS WIRE)-- Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen Vacations" or the “Company") today reported that on August 15, 2018, the Company renewed its revolving timeshare receivables hypothecation facility with Pacific Western Bank. The renewed credit facility agreement extends the revolving advance period which otherwise would have expired in September 2018 to now expiring in September 2021, with the facility maturing in September 2024. In each case, periods are subject to an additional 12-month extension at the option of Pacific Western Bank. Maximum permitted outstanding borrowings under the facility are $40 million, and, subject to the terms and conditions of the facility, approximately $19.8 million of the facility remained available as of August 15, 2018. Commencing on September 21, 2018, all borrowings outstanding under the Pacific Western Facility will bear interest at an annual rate equal to the 30-day LIBOR plus 3.00%; provided, however, that to the extent the borrowings are in excess of established debt minimums, these borrowings will bear interest at 30-day LIBOR plus 2.75%. This is a decrease from the current interest rate range of 30-day LIBOR plus 3.50% to 4.50%. Bluegreen plans to continue to use the facility to finance vacation ownership interest notes receivable.
"This extension continues to support our strategy of diversifying our sources of liquidity for VOI notes receivable and enhances our flexibility as we add new sales offices in key markets," said Tony Puleo, Bluegreen Vacations’ Executive Vice President, Chief Financial Officer & Treasurer. "We value our longstanding relationship with Pacific Western Bank, and we believe this extended financing will help continue to enable us to meet our capital needs as we grow our business."
Chris Hague, Group Head, of Lender Finance at Pacific Western Bank commented, “We are excited to continue our relationship with Bluegreen, and are committed to supporting their ongoing success in the vacation ownership industry.”
About Bluegreen Vacations Corporation:
Bluegreen Vacations Corporation (NYSE: BXG) is a leading vacation ownership company that markets and sells vacation ownership interests (VOIs) and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with approximately 215,000 owners, 69 Club and Club Associate Resorts and access to more than 11,100 other hotels and resorts through partnerships and exchange networks as of June 30, 2018. Bluegreen Vacations also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services, to or on behalf of third parties. Bluegreen is 90% owned by BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a diversified holding company. For further information, visit www.BluegreenVacations.com.
About BBX Capital Corporation:
BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), is a Florida-based diversified holding company whose activities include its 90% ownership interest in Bluegreen Vacations Corporation (NYSE: BXG) as well as its real estate and middle market divisions. For additional information, please visit www.BBXCapital.com.
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on current expectations of management and can be identified by the use of words such as “believe”, “may”, “could”, “should”, “plans”, “anticipates”, “intends”, “estimates”, “expects”, and other words and phrases of similar impact. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those set forth or implied by the forward-looking statements, including but not limited to, risks that the Company’s results or performance will differ from that expected, the risk that the requirements for drawing on the facility will not be met, and the risk that the Company will not in the future be in compliance with applicable covenants and ratios required by the facility. For a description of other risks and uncertainties, please see the “Risk Factors” section of Bluegreen’s Annual Report on Form 10-K for the year ended December 31, 2017. Bluegreen cautions that the foregoing factors are not exclusive. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Bluegreen does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements.
Source: Bluegreen Vacations Corporation
Released September 4, 2018