Bluegreen Vacations Holding (BVH) along with its wholly owned subsidiary, Bluegreen Vacations, expanded and extended its syndicated credit facility with Fifth Third Bank.
The amended and restated facility provides for total borrowings of up to $300 million, consisting of a term loan of $100 million and a revolving line of $200 million, and matures in February 2027. As of the date of this release, outstanding borrowings under the amended and restated facility totaled $130 million, including $100 million outstanding under the term loan and $30 million of borrowings under the revolving line of credit. Borrowings under the facility, including amounts outstanding prior to the amendment and restatement and future borrowings, bear interest at a rate ranging from term SOFR+1.75% to SOFR+2.50% with a 0.05% to 0.10% credit spread adjustment for the one-month rate and three-month rate, respectively. Borrowings are collateralized by certain of Bluegreen’s vacation ownership interest inventory, sales center buildings, short term receivables and the cash flows from the residual interests relating to certain term securitizations.
“The expansion and extension of the line of credit with Fifth Third Bank enhances our liquidity and provides us with additional capacity to support post-pandemic initiatives and operations. We believe the expansion of the facility and the improved pricing indicates the market’s positive view of our business model, particularly during what has been a challenging period,” Ray Lopez, CFO and COO of Bluegreen Vacations, said.
Fifth Third acted as joint lead arranger, sole bookrunner, administration agent and L/C issuer for the transaction with certain other bank participants.
