Bluegreen Corporation Enters into $137.5 Million Timeshare Receivables Purchase Facility with BB&T
biz.yahoo.com
Wednesday June 28, 8:33 am ET
BOCA RATON, Fla.--(BUSINESS WIRE)--June 28, 2006--Bluegreen Corporation (NYSE: BXG), a leading provider of Colorful Places to Live and Play®, today announced that it has entered into a vacation ownership receivables purchase facility (the "BB&T Purchase Facility") with Branch Banking and Trust Company ("BB&T") on June 1, 2006 that allows for transfers of notes receivable pursuant to the terms of the facility and subject to certain conditions precedent for a cumulative purchase price of up to $137.5 million, on a revolving basis through May 2008. While ownership of the receivables was transferred for legal purposes, the transfer of the receivables under the facility will be accounted for as a financing transaction for financial accounting purposes. Consequently, the receivables will continue to be reflected as assets and the associated obligations will be reflected as liabilities on Bluegreen's balance sheet. Bluegreen transferred $19.5 million of receivables into this new facility on June 22, 2006, generating approximately $16.5 million in cash proceeds that will be used for general operating purposes. Bluegreen expects to transfer an additional $15.5 million of timeshare receivables into this new facility within the next several days.
George F. Donovan, President and Chief Executive Officer of Bluegreen®, commented, "We are very pleased to enter into this relationship with BB&T, which we believe reflects the quality of Bluegreen's vacation ownership receivables and the promising outlook for our Resorts business. This facility, in combination with our previously announced timeshare receivables purchase facility, are expected to provide Bluegreen with approximately $198 million of remaining availability over the next 22-24 months." |
