Bluegreen Corporation (NYSE: BXG) (“Bluegreen”), a leading provider of Colorful Places to Live and Play®, today announced that it has entered into a revolving timeshare receivables hypothecation facility with a syndicate of lenders led by Liberty Bank and assembled by Wellington Financial. The $60 million facility (the “New Facility”) provides for an 85% advance on eligible receivables pledged under the facility during a two-year period ending in February 2013, subject to customary terms and conditions. Availability under the New Facility is reduced by amounts currently outstanding to certain syndicate participants under Bluegreen’s existing Liberty Bank timeshare receivables facility (the “Existing Facility”). When the New Facility was finalized, outstanding amounts under the Existing Facility were approximately $47.5 million; therefore initial availability under the New Facility was approximately $12.5 million. However, as outstanding amounts on the Existing Facility amortize over time, the New Facility will revolve up to $60 million, subject to eligible collateral and customary terms and conditions. Amounts borrowed under and interest on the New Facility will be repaid as cash is collected on the pledged receivables, with the remaining balance due in February 2016.
Tony Puleo, Bluegreen’s Senior Vice President, Chief Financial Officer and Treasurer, commented, “We appreciate the continuing support of the Liberty Bank syndicate participants, and are pleased to be able to further enhance our liquidity and support our business initiatives.”
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 Liberty hypothecation 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.