Thursday, January 12, 2006


Bluegreen Completes $204M Securitization Of Timeshare Real Estate Receivables

Bluegreen Corp. has completed a $203.8-million private offering of vacation ownershiptimeshare real estate receivable-backed securities, the largest private offering of such securities in its history. The offering encompasses six classes of notes, each rated at between AAA and BBB by Standard & Poor’s and at between Aaa and Ba2 by Moody’s.

The interest rates vary by class from 5.409% to 9.852% for a blended overall rate of approximately 5.98%. BXG Receivables Note Trust 2005 issued the securities. A Bluegreen spokesman tells that BXG is an independent statutory trust formed specifically by Wilmington, DE-based Wilmington Trust to administer this securitization.

Bluegreen typically finances sales of timeshare real estate at its timeshare resorts. “Generally they are financed for a 10-year period,” the spokesman explains. “Securitization,” which aggregates these loans into a negotiable security containing coupon bonds that can be acquired by outside investors, “provides an acceleration of our cash flow,” he says.

The timeshare real estate receivables in this transaction have a weighted average interest rate of approximately 14.97%. Bluegreen will continue to service the loans that collateralize the securities, and it has also received a retained interest in the future cash flows from this securitization. “We believe that the successful completion of this offering reflects the liquidity of Bluegreen’s vacation ownership receivables,” said George Donovan, president and CEO, in a statement.

The company will use the proceeds of the offering to pay down all outstanding debt due under its vacation ownership receivables purchase facilities with Winston-Salem, NC-based Branch Banking & Trust Co. and Bennington, VT-based Resort Finance LLC, which expired at the end of December. Meanwhile, Bluegreen is also currently involved in the documentation process for a new, $175-million vacation ownership purchase facility with BB&T, which is expected to close this quarter.

Bluegreen Resorts, the timeshare real estate component of the company, gives its approximately 150,000 owners access to more than 40 resorts and an exchange network of more than 3,700 resorts, including cruises. Its sister component, Bluegreen Communities, develops master-planned residential and golf communities.

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