Bluegreen Vacations Holding Corporation (NYSE: BVH) (OTCQX: BVHBB) (the "Company" or "Bluegreen Vacations"), announced today the completion of a private offering and sale of approximately $172.0 million of vacation ownership interest ("VOI") receivable-backed Notes (the "2022-A Term Securitization").
The 2022-A Term Securitization consisted of the issuance of three tranches of VOI receivable-backed Notes (collectively, the "Notes") as follows: approximately $71.0 million of Class A Notes, approximately $56.5 million of Class B Notes, and approximately $44.5 million of Class C Notes. The interest rates on the Class A Notes, Class B Notes and Class C Notes are 4.12%, 4.61% and 5.35%, respectively, which blends to an overall weighted average note interest rate of approximately 4.60%. The gross advance rate for this transaction was 88.3%. The Notes mature in September 2037. A portion of the proceeds from the Notes sale received at closing were used to pay down certain of the Company's receivable-backed debt facilities. The remainder of the proceeds will be used primarily for general corporate purposes.
"We are pleased to complete this securitization in a challenging capital markets and interest rate environment. This securitization, along with our previously completed renewal and extension of our corporate facility, positions us well for continued growth in our business. Our use of proceeds to pay down certain of our other receivable-backed debt facilities is expected to provide us with availability under those facilities to support our current and post-pandemic initiatives and operations," commented Ray Lopez, Chief Financial Officer and Chief Operating Officer of Bluegreen Vacations.
The transaction was completed in reliance upon Rule 144A and Regulation S as a private placement of securities not registered under the Securities Act of 1933, as amended (the "Securities Act"), or any state securities law. All of such securities having been sold, this announcement of their sale appears as a matter of record only. The Notes have not been registered under the Securities Act, or the securities laws of any state or other jurisdiction, and may not be offered or sold in the United States without registration or an applicable exemption from registration under the Securities Act and applicable state securities laws.
KeyBanc Capital Markets Inc. ("KeyCM") and BofA Securities acted as joint bookrunners and co-lead managers and Truist Securities acted as co-manager with all being the initial purchasers of the Notes. KeyCM also acted as structuring agent for the transaction.
About Bluegreen Vacations: Bluegreen Vacations Holding Corporation (NYSE: BVH; OTCQX: BVHBB) is a leading vacation ownership company that markets and sells vacation ownership interests and manages resorts in popular leisure and urban destinations. The Bluegreen Vacation Club is a flexible, points-based, deeded vacation ownership plan with 68 Club and Club Associate Resorts and access to nearly 11,300 other hotels and resorts through partnerships and exchange networks. The Company also offers a portfolio of comprehensive, fee-based resort management, financial, and sales and marketing services to, or on behalf of, third parties.
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Bluegreen Vacations Holding Corporation: www.BVHCorp.com
This press release contains forward-looking statements based largely on current expectations of the Company that involve a number of risks and uncertainties. All opinions, forecasts, projections, future plans, or other statements, other than statements of historical fact, are forward-looking statements and can be identified by the use of words or phrases such as "plans," "believes," "will," "expects," "anticipates," "intends," "estimates," "our view," "we see," "would," and words and phrases of similar import. The forward-looking statements in this press release are also forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and involve substantial risks and uncertainties. We can give no assurance that such expectations will prove to be correct. Actual results, performance, or achievements could differ materially from those contemplated, expressed, or implied by the forward-looking statements contained herein. Forward-looking statements are based largely on our expectations and are subject to a number of risks and uncertainties that are subject to change based on factors which are, in many instances, beyond our control. When considering forward-looking statements, the reader should keep in mind the risks, uncertainties, and other cautionary statements made in this report and in the Company's other reports filed with the SEC. These risks and uncertainties include, but are not limited to, risks related to the Company's operations, results, liquidity, growth initiatives and business model, including the market's perception thereof and the impact of the securitization described in this press release on the Company's operations, liquidity, growth initiatives, results and financial condition, that the future use of proceeds from the securitization may differ from the currently anticipated use, that the Company's results or performance will differ from that expected, and that the Company's receivable loan portfolio won't perform as anticipated. For a description of other risks and uncertainties, please see the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2021. The Company 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. The Company does not undertake, and specifically disclaims any obligation, to update or supplement any forward-looking statements.