BXG Receivables Note Trust 2017-A is a $120.19 million securitization of vacation interval loans originated by timeshare developer Bluegreen Corp. and sister company Bluegreen Properties N.V.
S&P Global Ratings assigned a preliminary A rating to the $88.8 million in Class A notes that benefit from 35% credit enhancement. The $31.4 million in Class B notes are rated BBB-.
The notes are secured by 10,190 loans with an aggregate balance of $116.5 million and an average balance of $10,686 with coupons ranging from 6% to 17.99%.
This is the first timeshare receivables securitization of the year for Bluegreen.
Bluegreen is one of the largest timeshare – or vacation ownership interval – developer and manager in the U.S., with over 208,000 owners through its Bluegreen Vacation Club, whose members are part of a worldwide exchange network managed by RCI.
Bluegreen provides financing up to 90% of a timeshare purchase through a fixed-rate, fully amoritizing loan of three to 10 years. The loans in the first collateral pool issuance for the BXG receivables note trust this year have a minimum loan term of five years.
S&P is projecting a 19.5% base-case cumulative gross default rate on the pool.