Bluegreen Corporation Completes $100 Million Term Securitization

Bluegreen Corporation BXG today announced that on September 13, 2012 it completed a private offering and sale of $100 million of investment-grade, timeshare loan-backed notes (the "2012-A Term Securitization"). The 2012-A Term Securitization consisted of the issuance of two tranches of timeshare-loan backed notes: $79.05 million of Class A and $20.95 million of Class B notes with note interest rates of 2.66% and 3.99%, respectively, which blended to a weighted-average note interest rate of 2.94%. The amount of the timeshare receivables sold was approximately $112 million, approximately $102 million of which was provided at closing and approximately $10 million of which is expected to be provided prior to December 13, 2012, with a gross advance rate of 89.5%. BB&T Capital Markets acted as the bookrunner, structuring agent and co-lead manager, and RBS Securities Inc. acted as co-lead manager. Both BB&T Capital Markets and RBS Securities Inc. acted as initial purchasers. The gross proceeds of $100 million were used to: repay Branch Banking and Trust Company ("BB&T") approximately $40 million, representing all amounts currently outstanding, including accrued interest, under the Company's existing purchase facility with BB&T (the "BB&T Purchase Facility"); repay Liberty Bank approximately $35 million, including accrued interest, under the Company's 2008 Liberty Bank Facility; capitalize a reserve fund, and; pay fees and expenses associated with the transaction. The remainder of the proceeds, approximately $22 million, will be used for general corporate purposes. Tony Puleo, Bluegreen's Chief Financial Officer, commented, “This transaction allowed us to refinance at a 2.94% fixed interest rate receivables that were previously pledged under certain of our variable-rate credit facilities, and create approximately $60 million of additional availability under existing receivable-backed credit facilities. BB&T Capital Markets and RBS Securities did an excellent job and helped us complete a very successful transaction.”