BOCA RATON, Fla.–(BUSINESS WIRE)–Oct. 30, 2000 –
Closes $30.1 Million Initial Purchase Under New Facility
Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of timeshare resorts, golf communities and residential land, today announced that it has entered into a 364-day, $90 million timeshare receivables purchase facility with Heller Financial, Inc. (NYSE: HF) (Heller) acting as the Facility Administrator.
The facility utilizes an owner's 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's trust without recourse to Bluegreen or the subsidiary. Barclays Bank PLC (Class A) and Heller (Class B) have purchased notes issued by the owners' trust and will fund the facility. Bluegreen will continue to service the receivables that are sold under the facility.
On October 16, 2000, Bluegreen and the Noteholders completed the first transaction under this new facility, with the receivables subsidiary selling approximately $31.8 million of Bluegreen's timeshare receivables to the trust for approximately $30.1 million.
George Donovan, President and Chief Executive Officer of Bluegreen, stated, Including this recent transaction, Heller has purchased directly or acted as the facility administrator on an aggregate of approximately $130 million of Bluegreen's timeshare receivables since June 1998. We believe that this off-balance sheet financing illustrates both the quality of Bluegreen's receivables and Heller's belief in our business model and prospects. Above that, it will simplify our capital structure, reduce our loan exposure and improve our cash flow, while facilitating our industry expansion efforts.
Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of timeshare resorts, golf communities and residential land. The Company's timeshare resorts are located in a variety of popular vacation destinations including Orlando, Florida; the Smoky Mountains of Tennessee; Myrtle Beach, South Carolina; Charleston, South Carolina; Branson, Missouri; Wisconsin Dells, Wisconsin; Gordonsville, Virginia; and Aruba, while its land operations are predominantly located in the Southeastern and Southwestern United States.
This press release contains forward-looking statements and the Company desires to take advantage of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 in connection with these statements. Statements made by George Donovan and any other statements contained herein that are not statements of historical fact may be deemed forward-looking statements. The words believe, expect, intend, anticipate, project, may, should, estimate, plan and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and many of which are beyond the Company's control. Future events, industry trends and actual results could differ materially from those set forth in, contemplated by, or underlying such forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, regulatory changes, changes in national or regional economic conditions that can affect the real estate market, risks associated with a large investment in real estate, shortages of available inventory, the risk that future sales contemplated under the timeshare purchase facility referred to above will not close and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K and its most recent quarterly report on Form 10-Q. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved.
Chief Financial Officer
Investor Relations Counsel:
The Equity Group Inc.