Bluegreen sells timeshare loan-back securities
Bluegreen Corp. said it has completed a private offering and sale of $60 million of timeshare loan-back securities.
The Boca Raton-based resorts and communities firm said the amount of the receivables sold totaled $68.6 million, including $61.4 million of loans in aggregate principal of timeshare loans that were previously transferred under an existing timeshare loans purchase facility with Branch Banking & Trust Company and $7.2 million of timeshare loans owned by Bluegreen immediately prior to the transaction. BB&T Capital Markets was the initial purchaser.
Bluegreen (NYSE: BXG) said proceeds from the term securitization were used to repay $51 million of the $60.6 million outstanding under the BB&T Trust purchase facility, deposit initial amounts in a required cash reserve account, pay certain transaction fees and expenses and provide net cash proceeds of $5.8 million to Bluegreen, which will be used for general corporate purposes and debt service bad credit payday loan.
The company also said it has renewed the BB&T purchase facility, extending the facility to May 2010 and expanding the facility amount to a cumulative purchase price of $150 million on a revolving basis, pursuant to the terms of the facility and subject to certain conditions precedent.
The original facility, signed in June 2006, allowed for transfers of notes receivable for a cumulative purchase price of up to $137.5 million, on a revolving basis, through May 2008.
Bluegreen also said it has repaid in full its $55 million, 10.5 percent Senior Secured Notes plus all accrued interest, immediately prior to the maturity of the notes on April 1, 2008.
Shares were unchanged at $7 in morning trading. The 52-week high was $12.82 on May 15. The 52-week low was $5.93 on March 14.