Bluegreen Corporation (NYSE: BXG) (“Bluegreen” or “the Company”), a leading provider of Colorful Places to Live and Play®, announced today that it has entered into a new timeshare receivables purchase facility with Quorum Federal Credit Union (“Quorum”).
The Quorum facility allows for the sale of timeshare notes receivable on a non-recourse basis, pursuant to the terms of the facility and subject to certain conditions precedent. Quorum has agreed to purchase eligible timeshare receivables from the Company or certain of its subsidiaries up to an aggregate $20 million purchase price through August 31, 2011 at an 80% advance rate and at a program fee rate of 8% per annum, and at terms to be agreed upon through December 22, 2011. The facility contemplates the ability of Quorum to purchase additional receivables subject to advance rates, fees and other terms to be agreed upon from time to time over and above the initial $20 million commitment, pursuant to the terms of the facility and subject to certain conditions precedent. Bluegreen or a subsidiary, as applicable, will receive all of the excess cash flows generated by the receivables transferred to Quorum under the facility (excess meaning after customary payment of fees and return of amounts invested by Quorum under the facility on a pro-rata basis as borrowers make payments on their timeshare loans).
Tony Puleo, Bluegreen’s Senior Vice President, Chief Financial Officer and Treasurer, commented, “We are excited to begin our relationship with Quorum Federal Credit Union. We appreciate the support they are providing for our ongoing business objectives.”
Bruno Sementilli, President of Quorum, commented, “We look forward to building a relationship with Bluegreen for the benefit of its vacation ownership business."
In September 2010, Bluegreen announced that it had received two non-binding term sheets from new, separate lenders for an aggregate $40 million of timeshare receivables credit facility capacity. The closing of the first facility, in the amount of $20 million, was announced in October 2010. With the completion of the Quorum transaction, Bluegreen has closed upon both of the credit facilities it had been pursuing.
ABOUT QUORUM FEDERAL CREDIT UNION
Quorum Federal Credit Union (www.quorumfcu.org) is headquartered at 2 Manhattanville Road, Suite 401, Purchase, NY 10577. With over 40,000 members and over $640 million in assets, it is among the largest credit unions in the nation. Quorum, a full-service financial institution, currently serves companies of all sizes and has members in all 50 states. Managed by its members with an elected, all-volunteer board, Quorum (FCU) maintains high levels of service and makes decisions in its members’ best interests.
Quorum was founded in 1934 as a company benefit for Kraft Foods employees. Formerly known as Kraft Foods Federal Credit Union, the company changed its name in 2005 to Quorum Federal Credit Union to better reflect its broad membership base.
ABOUT BLUEGREEN CORPORATION
Founded in 1966 and headquartered in Boca Raton, FL, Bluegreen Corporation (NYSE:BXG) is the leader in providing Colorful Places to Live and Play® through its vacation ownership resort and residential real estate businesses. Bluegreen Resorts manages, markets and sells the Bluegreen Vacation Club, a flexible, real estate-based vacation ownership plan with more than 160,000 owners, over 56 owned or managed resorts, and access to more than 4,000 resorts worldwide. Bluegreen Communities has developed master-planned residential and golf communities primarily in the southern and southeastern U.S., and has sold over 55,000 homesites. We also offer a portfolio of comprehensive, turnkey, fee-based service resort management, financial services, customer generation and sales solutions to third-party developers and lenders. For more information, visit www.bluegreencorp.com.
Statements in this release may constitute forward looking statements and are made pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Forward looking statements are based largely on expectations and are subject to a number of risks and uncertainties including but not limited to: the risks and uncertainties associated with the risk that the Quorum purchase facility may not be available pursuant to its terms or at all; the risk that the Company may not be able to obtain adequate receivable credit facilities in the future; and the risks and other factors detailed in the Company’s SEC filings, including its most recent Annual Report on Form 10-K filed on March 31, 2010, and most recent Form 10-Q filed on November 9, 2010.