Item 2.03 Creation of a Direct Financial Obligation or an Obligation under an
Off-Balance Sheet Arrangement of a Registrant.
On December 27, 2019, Bluegreen Vacations Corporation ("Bluegreen") entered into
an omnibus amendment and other instruments to amend and extend its timeshare
notes receivable purchase facility (the "Purchase Facility"), which permits
maximum outstanding financings of up to $80.0 million and an advance rate of 80%
with respect to timeshare receivables securing amounts financed. The amendments
to the Purchase Facility extended the advance period to December 2022 from
December 2019, subject to eligible collateral and other terms of the Purchase
Facility. KeyBank National Association ("KeyBank") and DZ Bank AG Deutsche
Zentral-Genossenschaftsbank, Frankfurt AM Main ("DZ") remain the funding agents
for the Purchase Facility. As previously described, (a) the Purchase Facility
will mature and all outstanding amounts will become due 24 months after the
revolving advance period has expired, or earlier under certain circumstances set
forth in the Purchase Facility, and (b) interest on amounts outstanding under
the Purchase Facility is tied to an applicable index rate of the LIBOR rate, in
the case of amounts funded by KeyBank, and a cost of funds rate or commercial
paper rates, in the case of amounts funded by or through DZ. As a result of the
amendments, the interest rate under the Purchase Facility until the expiration
of the revolving advance period will equal the applicable index rate plus 2.25%
(a decrease from 2.75% prior to the amendment) and thereafter will equal the
applicable index rate plus 3.25% (a decrease from 4.75% prior to the amendment).
Subject to the terms of the Purchase Facility, Bluegreen will receive the excess
cash flow generated by the receivables sold (excess meaning after payments of
customary fees, interest and principal under the Purchase facility) until the
expiration of the receivables advance period, at which point all of the excess
cash flow will be paid to the note holders until the outstanding balance is
reduced to zero. While ownership of the timeshare receivables included in the
Purchase Facility is transferred and sold for legal purposes, the transfer of
these timeshare receivables is accounted for as a secured borrowing for
financial reporting purposes. The Purchase Facility is nonrecourse and is not
guaranteed by Bluegreen.
The foregoing description of the Purchase Facility is a summary only, does not
purport to be complete and is qualified in its entirety by reference to the full
text of the agreements and other instruments relating to the Purchase Facility,
which are filed as Exhibit 10.1 to this Current Report on Form 8-K and are
incorporated herein by reference.
Item 9.01 Financial Statements and Exhibits.
(d) Exhibits.
10.1 - Omnibus Amendment No. 2, dated as of December 27, 2019, among BXG
Timeshare Trust I, Bluegreen Vacations Corporation, Vacation Trust, Inc.,
Concord Servicing Corporation, U.S. Bank National Association, KeyBank National
Association and DZ Bank AG Deutsche Zentral-Genossenschaftsbank, Frankfurt AM
Main
1
--------------------------------------------------------------------------------
© Edgar Online, source Glimpses
BLUEGREEN VACATIONS CORPORATION 