Boca Raton, FL – April 25, 2002 – Bluegreen Corporation (NYSE: BXG), a leading U.S. developer and marketer of drive-to timeshare resorts, golf communities and residential land, today announced that it executed an agreement with ING Capital LLC (“ING”), an affiliate of ING Bank NV, under which ING expanded to $125 million and extended through April 16, 2003 a revolving timeshare receivables purchase facility that Bluegreen® had originally entered into in June 2001 with another institution (“the institution”) (see release dated July 19, 2001). At that time, Bluegreen executed a purchase agreement for a 364-day, $75 million revolving timeshare receivables purchase facility with the institution acting as the Agent. On April 17, 2002, ING acquired and assumed the rights, obligations and commitments for the facility by purchasing from the institution the outstanding principal balance under the facility of approximately $64.9 million.
Except for the increase in the size of the facility and the term of the facility, the terms and conditions of the ING facility are substantially unchanged from those of the facility entered into with the institution. Sales under the facility are subject to satisfaction of certain conditions, and receivables to be sold under the facility must satisfy certain eligibility criteria.
The facility utilizes an owner's trust structure, pursuant to which Bluegreen will sell or otherwise absolutely transfer timeshare receivables (or, if appropriate, land receivables) to a special purpose subsidiary of Bluegreen. This special purpose subsidiary would, in turn, sell the receivables to the owner's trust without recourse to Bluegreen or the subsidiary, except for breaches of customary representations and warranties at the time of sale. Bluegreen will continue to service the receivables that are sold under the facility.
John Chiste, Senior Vice President and Chief Financial Officer of Bluegreen, stated, “We are very pleased that ING has increased the amount of our facility by $50 million and extended it to 2003. We believe that this reflects a recognition of the quality of Bluegreen's receivables and a confidence in the Company's operations and prospects. This agreement will also simplify our capital structure, reduce our loan loss exposure and improve our cash flow, while facilitating our industry expansion efforts.”
Bluegreen also announced that it has received $9.75 million in new project financing from Marshall, Miller & Schroeder Investments Corporation for the purchase and renovation of the Company's new luxury beachfront timeshare resort property, the Solara Surfside.
The Solara Surfside is located on the beach in the quaint residential community of Surfside, within easy reach of Miami Beach and the upscale Bal Harbor area. Bluegreen has acquired approximately 3,000 intervals at the resort, configured to include one-bedroom and two-bedroom oceanfront units. The property includes a pool and deck, and offers adequate space for expansion of the existing on-site sales center. The Company believes that the location and four-season beach destination with its desirable amenities will appeal to the Northeastern and Midwestern markets, which make up a large share of the Bluegreen Vacation Club's existing and anticipated future members.
Mr. Chiste stated, “We are very pleased to announce our relationship with Marshall, Miller & Schroeder Investments. Their participation provides us with additional financial flexibility to expand our business.”
Bluegreen is one of the leading companies engaged in the acquisition, development, marketing and sale of drive-to timeshare resorts, golf communities and residential land. The Company's timeshare resorts are located in a variety of popular vacation destinations including Orlando, Florida; the Smoky Mountains of Tennessee; Myrtle Beach, South Carolina; Charleston, South Carolina; Branson, Missouri; Wisconsin Dells, Wisconsin; Gordonsville, Virginia; Ridgedale, Missouri; Surfside, Florida; and Aruba, while its land operations are predominantly located in the Southeastern and Southwestern United States.
This press release contains forward-looking statements and the Company desires to take advantage of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995 in connection with these statements. Statements made by George Donovan and any other statements contained herein that are not statements of historical fact may be deemed forward-looking statements. The words "believe," "expect," "intend," "anticipate," "project," “may,” “should,” “estimate,” “plan” and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. The Company does not undertake and specifically disclaims any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements are based on current expectations and assumptions and are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and many of which are beyond the Company's control. Future events, industry trends and actual results could differ materially from those set forth in, contemplated by, or underlying such forward-looking statements. The risks and uncertainties to which forward-looking statements are subject include, but are not limited to, actual results for future periods may differ from those estimated, consumer demand may be less than anticipated, regulatory changes, changes in national or regional economic conditions that can affect the real estate market, risks associated with a large investment in real estate, shortages of available inventory, the risk that the conditions to sales and eligibility criteria under the receivables purchase facility referred to above will not be satisfied or sales contemplated under the receivables purchase facility otherwise will not close or the full amount of the facility will not be utilized, the risk that the Solara Surfside project will require additional funds, and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission, including its most recent annual report on Form 10-K with respect to fiscal 2001 and the most recent report on Form 10-Q filed on February 11, 2002. Given these risks and uncertainties, investors are cautioned not to place undue reliance on such forward-looking statements and no assurances can be given that such statements will be achieved.