BOCA RATON, Fla.--(BUSINESS WIRE)--Bluegreen Vacations Corporation (NYSE:BXG), along with Bluegreen/Big Cedar Vacations, LLC, a joint venture in which Bluegreen Vacations has a majority interest, today announced the renewal of the non-recourse VOI notes receivable purchase facility with Quorum Federal Credit Union (“Quorum”). Under this renewal, Quorum has agreed to purchase, on a revolving basis, eligible VOI notes receivable in an aggregate purchase price of up to $50 million. As of April 6, 2018, $21.1 million was outstanding under the Quorum Purchase Facility. The amendment to the Quorum Purchase Facility extended the purchase period from June 30, 2018 to June 30, 2020.
“The renewal of our Quorum Purchase Facility is consistent with our strategy of maintaining diversified sources of liquidity for our VOI notes receivable, and will provide enhanced capacity to support our stated growth initiatives,” said Tony Puleo, Bluegreen Vacation's Executive Vice President and Chief Financial Officer. “We deeply value our relationship with Quorum Federal Credit Union and look forward to continuing to work together as we move forward.”
As part of this amendment, Quorum agreed to an interest rate of 4.95% per annum on advances made through September 30, 2018. The interest rate on advances made after September 30, 2018 will be set at the time of funding based on rates mutually agreed upon by all parties. The amendment also reduced the loan purchase fee applicable to future advances from 0.50% to 0.25% and extended the maturity of the Quorum Purchase Facility from December 2030 to December 2032.
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 top leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with approximately 213,000 owners, 67 Club and Club Associate Resorts and access to more than 11,000 other hotels and resorts through partnerships and exchange networks as of December 31, 2017. 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 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:
About BBX Capital Corporation: BBX Capital Corporation (NYSE: BBX) (OTCQX: BBXTB), is a Florida-based diversified holding company whose activities include its 90 percent ownership interest in Bluegreen Vacations Corporation (NYSE: BXG) as well as its real estate and middle market divisions. For additional information, please visit www.BBXCapital.com.
Certain matters within this press release include “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. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause actual results or performance to differ from those expected in the forward-looking statements, including but not limited to, the risk that the terms for drawing on the facility, including the maintenance of required ratios and compliance with applicable covenants, will not be met and risks that interest rates or advances after September 30, 2018 will not be mutually agreed to or will be higher than 4.95%. Additional risks and uncertainties are described in Bluegreen’s filings with the Securities and Exchange Commission available to view on the SEC's website, www.sec.gov, and on Bluegreen Vacation's website, ir.bluegreenvacations.com/. You should not place undue reliance on any forward-looking statement, which speaks only as of the date made. Bluegreen Vacations cautions that it does not undertake, and specifically disclaims any obligation, to update or supplement such forward-looking statements.