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.
