Timeshare sales company Bluegreen Corp. yesterday said it completed a $100 million private placement of investment-grade, timeshare loan-backed notes.
The deal, called 2012-A Term Securitization, was structured with $79.05 million of class A notes and $20.95 million of class B notes with note interest rates of 2.66% and 3.99%, respectively. These blended to a weighted-average note interest rate of 2.94%.
The amount of the timeshare receivables sold was roughly $112 million, about $102 million of which was provided at closing and approximately $10 million of which is expected to be provided before Dec. 13 with a gross advance rate of 89.5%.
BB&T Capital Markets acted as the bookrunner, structuring agent and co-lead manager, and RBS Securities was co-lead manager.
The deal has allowed Bluegreen to refinance existing debt at a 2.94% fixed interest rate receivables that were previously pledged under certain of the company's variable-rate credit facilities, and create about $60 million of added availability under existing receivable-backed credit facilities.
Westgate Resorts is also planning to sell its $22 million timeshare ABS deal called Westgate Resorts 2012-2 LLC. The deal is backed by deeded vacation ownership interval (timeshare) loans.
Standard & Poor's issued a presale report yesterday on the offering and said it will rate the class A notes of the deal 'A', the class B notes will be rated 'BBB' and the class c notes will be rated 'BB'.
Existing U.S. timeshare ABS deals have seen delinquencies drop in the second quarter, according to the latest