Bluegreen Vacations Renews and Extends $40 Million Timeshare Receivables Loan
September 04 2018 - 4:05PM
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.
Forward-Looking
Statements:
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20180904005789/en/
Edelman Financial CommunicationsInvestor Relations
Contact:Danielle O’Brien,
212-704-8166Bluegreen@edelman.comorMedia Contact:Brad Simon,
305-358-5291Bradley.Simon@edelman.com
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