A $110.6-million securitization of timeshare loans is heading to the market, according to a pre-sale report from Standard & Poor’s.
The deal’s creditworthiness is tied to the servicing expertise of originator and servicer Bluegreen Corp in addition to structural enhancements.
S&P gave an ‘A (sf)’ rating to the $89.1-million A tranche and ‘BBB (sf)’ to the $21.5-million B tranche.
Backed by 10,924 loans, the deal is being led by BB&T Capital Markets and Barclays Capital.
Bluegreen is one of the largest timeshare developers and managers in the U.S., focusing on the area of regional resorts. S&P said these places tend to be located only a few-hours drive from major metropolitan areas. At June 30, more than 174,000 people participated in the Bluegreen Vacation Club as timeshare owners. The club is 18 years old.
The deal has several triggers. If any is tripped, all available funds would be re-directed pay down principal. Among the triggers is a three-month rolling average 61-plus-day delinquency that is greater than 6%, and a three-month rolling average default level that exceeds 1.50%.
Bluegreen has six previous timeshare securitizations under its belt.