Bluegreen Corp Completes Timeshare-Loan Backed Securities

Bluegreen Corp has completed a private offering of $107.6 million in timeshare-loan backed securities. The proceeds were used to pay off a receivables purchase line at Branch Banking and Trust Co., and capitalize a reserve fund. The company also retained $9.9 million for general corporate purposes.

“The attractive credit profile of our loan portfolio and a low interest rate environment allowed us to structure a transaction on favorable terms," said Tony Puleo, Bluegreen’s senior vice president, CFO and treasurer, in a news release.

The offering involved $88 million of A-rated and $19.6 million of BBB-rated notes, with coupons of 5.1 percent and 7.5 percent, respectively. BB&T Capital Markets acted as the placement agent for Boca Raton-based Bluegreen which provides vacation properties.

Bluegreen Corp. was founded in 1966 and has been publicly traded on the New York Stock Exchange since 1986. The company is a leading provider of colorful places to live and play through its resorts and residential community businesses.

Bluegreen is organized into two business segments: Bluegreen Resorts and Bluegreen Communities. Bluegreen Resorts acquires, develops and markets vacation ownership interests in resorts generally located in popular high-volume, "drive-to" vacation destinations and provides various services to third-party resort owners.

Bluegreen Communities acquires, develops and subdivides property and markets residential land homesites, the majority of which are sold directly to retail customers who seek to build a home in a high quality residential setting. In some cases, the properties feature a golf course and related amenities, and also offer real estate consulting and other services to third parties.

In addition, the company is engaged in a resort management business and the financing of individual purchasers of vacation ownership interests and, to a nominal extent, homesites sold by Bluegreen Communities.

Bluegreen Resorts has more than 194,000 owners and offers an ownership plan that provides access to more than 45 resorts and an exchange network of over 3,700 resorts and other vacation experiences, such as cruises and hotel stays.
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