Bluegreen Vacations Corporation Completes $118 Million Securitization of Vacation Ownership Receivables
BOCA RATON, Fla.--(BUSINESS WIRE)-- Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen Vacations" or the “Company") announced today that it has completed a securitization involving the issuance of $117.7 million of investment-grade vacation ownership loan-backed notes.
The issuance was made through BXG Receivables Note Trust 2018-A and is comprised of $49.8 million of AAA rated vacation ownership loan-backed notes (Class A notes), $33.1 million of A/A+ rated vacation ownership loan-backed notes (Class B notes), and $34.8 million of BBB-/BBB rated vacation ownership loan-backed notes (Class C notes). The Class A, B and C notes have interest rates of approximately 3.77%, 3.95% and 4.44%, respectively, for an overall weighted average interest rate of approximately 4.02%. The gross advance rate for this transaction was 87.2%. Proceeds from the notes sale received at closing were primarily used to pay down certain of the Company’s receivable-backed debt facilities. The Company expects to use the remainder of the proceeds primarily for general corporate purposes.
“We are pleased to have successfully completed this transaction, which is our thirteenth securitization of vacation ownership receivables,” said Anthony M. Puleo, Executive Vice President, Chief Financial Officer and Treasurer of Bluegreen Vacations. “The securitization enhances our liquidity, and our use of proceeds to pay down certain of our other receivable-backed debt facilities provides us with additional capacity under those facilities to support our growth initiatives and operations. The notes were attractively priced, which we believe indicates the market’s positive perception of our business model.”
The transaction was completed in reliance upon Rule 144A and Regulation S as a private placement of securities not registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities law. All of such securities having been sold, this announcement of their sale appears as a matter of record only. The notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration under the Securities Act and applicable state securities laws.
KeyBanc Capital Markets Inc. served as joint book runner, structuring agent and co-lead manager on the transaction. Barclays Capital Inc. also served as a joint book runner and co-lead manager. KeyBanc Capital Markets and Barclays Capital were also the initial purchasers of the notes.
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 Vacations is 90% owned by BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a diversified holding company. For further information regarding Bluegreen Vacations, please 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 as well as BBX Capital’s real estate and middle market divisions. For additional information regarding BBX Capital, 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 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 related to Bluegreen Vacations’ operations, results, liquidity, growth initiatives and business model, including the market’s perception thereof and the impact of the securitization described in this press release on Bluegreen Vacations’ operations, liquidity, growth initiatives, results and financial condition, that the future use of proceeds from the securitization may differ from the currently anticipated use, that Bluegreen Vacations’ results or performance will differ from that expected, and that Bluegreen Vacations’ receivable loan portfolio won’t perform as anticipated. For a description of other risks and uncertainties, please see the “Risk Factors” section of Bluegreen Vacations’ Annual Report on Form 10-K for the year ended December 31, 2017. Bluegreen Vacations 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 Vacations does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements.
Bluegreen Vacations Corporation
Nikki Sacks, 203-682-8263
Evelyn Infurna, 203-682-8265
Source: Bluegreen Vacations Corporation
Released October 29, 2018