Bluegreen Corporation Enters into a Timeshare Receivables Purchase Facility for up to $140 Million with BB&T
biz.yahoo.com
Monday January 31, 11:03 am ET
Renews $15 Million Revolving Line of Credit with Wachovia Bank, N.A.
BOCA RATON, Fla.--(BUSINESS WIRE)--Jan. 31, 2005--Bluegreen Corporation (NYSE: BXG - News), a leading provider of leisure products and services, today announced that it has entered into a timeshare receivables purchase facility for up to $140 million with Branch Banking and Trust Company ("BB&T") acting as the Agent. The commitment for $40 million in purchases under this facility expires on July 5, 2005 and the remainder expires on December 29, 2005. The facility utilizes an owner trust structure, pursuant to which Bluegreen will sell or otherwise absolutely transfer timeshare receivables to a special purpose subsidiary of Bluegreen and the subsidiary will sell the receivables to the owner trust without recourse to Bluegreen or the subsidiary, except for breaches of customary representations and warranties made at the time of sale. Bluegreen will generally continue to service the receivables that are sold under the facility for a fee.
Bluegreen also announced that on December 31, 2004 it extended to June 30, 2006 the expiration date of its existing $15 million, unsecured revolving line of credit with Wachovia Bank, N.A. The facility, which is used for general corporate purposes, was set to expire on December 31, 2004. Other than the expiration date, the terms are unchanged.
George Donovan, President and Chief Executive Officer of Bluegreen, stated, "We believe that this new facility with BB&T and the renewal of our line of credit with Wachovia is a recognition of our prior success and the reputation that we have developed in the timeshare resort and residential development industries." |
