BOCA RATON, FL-Locally based Bluegreen Corp. has obtained an aggregate of $275 million in two separate transactions. It has renewed a $125-million timeshare receivables purchase facility and increased its borrowing capacity for acquisition, development and construction from $75 million to $150 million.
GE Real Estate is the facility administrator and purchaser of the timeshare receivables purchase facility. It allows for the sales of notes receivable for a cumulative price of up to $125 million for a two-year period ending in March 2008. The facility utilizes an owner's trust structure under which Bluegreen will sell or transfer timeshare receivables to a special purpose subsidiary of the company. The subsidiary will sell the receivables to the owner's trust without recourse to Bluegreen or the subsidiary. Bluegreen will continue to service the receivables.
A call to Bluegreen was not returned by deadline. Previously, a company spokesman told GlobeSt.com that the resorts division typically finances sales of vacation ownership at its timeshare properties, usually for a 10-year period. The sale of receivables provides the company with accelerated cash flow.
The AD&C revolving credit facility, also obtained on behalf of Bluegreen's resorts division, is from GMAC Residential Funding Corp. The borrowing period of the facility expires on Feb. 15, 2008, and outstanding borrowings mature no later than Aug. 15, 2013, although specific draws typically are due from years from the borrowing date. The new $150-million facility bears interest at 30-day Libor plus 4.5%. As of Dec. 31, $33.4 million was outstanding under this facility.
GMAC RFC also extended the borrowing period to Feb. 15, 2008 and the maturity date to Feb. 15, 2015 on Bluegreen's existing $75-million revolving vacation ownership receivables credit facility. It is used to borrow funds collateralized by Bluegreen's eligible vacation ownership receivables. As of Dec. 31, $25.4 million was outstanding under this facility.
"We believe that these agreements reflect the quality of Bluegreen's receivables, the soundness of our business model, and the promising outlook for our resorts business," George F. Donovan, president and CEO, says in a statement.
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