Bluegreen Vacations Corporation (NYSE: BXG) (“Bluegreen Vacations” or ‘the Company”) announced today that the Company completed a private offering and sale of approximately $131.0 million of vacation ownership interest (“VOI”) receivable-backed Notes (the “2020-A Term Securitization”).
The 2020-A Term Securitization consisted of the issuance of three tranches of VOI receivable-backed Notes (collectively, the “Notes”) as follows: approximately $48.6 million of Class A Notes, approximately $47.9 million of Class B Notes, and approximately $34.5 million of Class C Notes. The interest rates on the Class A Notes, Class B Notes and Class C Notes are 1.55%, 2.49% and 4.22%, respectively, which blends to an overall weighted average note interest rate of approximately 2.60%. The gross advance rate for this transaction was 88.0%. The Notes mature in February 2036. 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.
“This 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 current and post-pandemic initiatives and operations. The Notes were attractively priced, which we believe indicates the market’s positive perception of our business model, particularly during this period,” commented Ray Lopez, Chief Financial Officer and Chief Operating Officer of Bluegreen Vacations.
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. (“KeyCM”) and Barclays Capital Inc. acted as joint bookrunners and co-lead managers and were the initial purchasers of the Notes. KeyCM also acted as structuring agent for the transaction.
About Bluegreen Vacations Corporation: Bluegreen Vacations Corporation (NYSE: BXG) is a leading vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with 68 Club and Club Associate Resorts and access to approximately 11,400 other hotels and resorts through partnerships and exchange networks. 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 Corporation is approximately 93% owned by Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (formerly BBX Capital Corporation), a Florida-based holding company. For further information about Bluegreen Vacations Corporation, please visit www.BluegreenVacations.com.