FORT LAUDERDALE, Fla.--(BUSINESS WIRE)-- BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) ("BBX Capital"), announced that Bluegreen Vacations Corporation (NYSE: BXG), which is 90% owned by BBX Capital, issued the following press release. Please see the Bluegreen press release below.
BBX Capital Corporation Investor Relations Contact:
Leo Hinkley, Managing Director, Investor Relations Officer
Bluegreen Vacations Corporation Enters Into $225.0 Million Syndicated Corporate Credit Facility
BOCA RATON, Florida (October 28, 2019) – Bluegreen Vacations Corporation (NYSE: BXG) ("Bluegreen" or the “Company") today reported that on October 23, 2019, Bluegreen amended and restated its syndicated credit facility led by Fifth Third Bank (“Fifth Third”).
The amended credit facility is a $225.0 million syndicated credit facility which includes a $100.0 million term loan with quarterly amortization requirements and a $125.0 million revolving line of credit. The agreement increases the amount allowed for borrowings by $125.0 million compared to the prior facility. Amounts borrowed under the amended credit facility generally bear interest at a rate of LIBOR plus 2.00-2.50%, depending on Bluegreen’s leverage ratio, which is a significant reduction from the rates in effect for the prior facility.
As of the date of this release, outstanding borrowings under the credit facility totaled $130.0 million, including the $100.0 million term loan and $30.0 million of borrowings under the revolving line of credit. Borrowings were used to repay the $96.1 million outstanding under the prior facility and $3.6 million outstanding under another loan.
"This expanded credit facility incrementally lowers our cost of funding while supporting our strategy of diversifying our sources of liquidity and enhancing our operating and corporate flexibility for the future," said Ray Lopez, Bluegreen’s Executive Vice President, Chief Financial Officer & Treasurer. "We value our relationship with Fifth Third and the other members of the syndicate bank group, and we believe this extended financing will help continue to enable us to meet our capital needs as we grow our business."
Certain statements in this press release are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, are forward-looking statements. Forward-looking statements are based on current expectations of management and can be identified by the use of words such as “believe”, “may”, “could”, “should”, “plans”, “anticipates”, “intends”, “estimates”, “expects”, and other words and phrases of similar impact. Forward-looking statements involve risks, uncertainties and other factors, many of which are beyond our control, that may cause actual results or performance to differ from those set forth or implied in the forward-looking statements, including but not limited to, risks that the Company’s results or performance will differ from that expected, the risk that the expected benefits of the facility may not be realized, the risk that the requirements for drawing on the facility will not be met, the risk that the Company will not in the future be in compliance with applicable covenants and ratios required by the facility, risks relating to the increase in Bluegreen’s debt; and the additional risks and uncertainties described in Bluegreen's filings with the Securities and Exchange Commission, including, without limitation, those described in the “Risk Factors” section of Bluegreen’s Annual Report on Form 10-K for the year ended December 31, 2018. Bluegreen cautions that the foregoing factors are not exclusive. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Bluegreen does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements.
About Bluegreen Vacations Corporation
Bluegreen Vacations Corporation (NYSE: BXG) is a leading vacation ownership company that markets and sells vacation ownership interests (VOIs) and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based vacation ownership plan with approximately 219,000 owners, 69 Club and Club Associate Resorts and access to nearly 11,400 other hotels and resorts through partnerships and exchange networks as of September 30, 2019. Bluegreen Vacations also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services, to or on behalf of third parties. Bluegreen is approximately 90% owned by BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), a diversified holding company. For further information, visit www.BluegreenVacations.com.
About BBX Capital Corporation
BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB) is a Florida-based diversified holding company whose principal investments include Bluegreen Vacations Corporation (NYSE: BXG), BBX Capital Real Estate, Renin Holdings, and IT’SUGAR. For additional information, please visit www.BBXCapital.com.
Bluegreen Vacations Corporation
Nikki Sacks, 203-682-8263
Evelyn Infurna, 203-682-8265
Source: BBX Capital Corporation