Bluegreen Corp. announces private placement of real estate mortgage investment conduit - REMIC - pass-through certificates.BOCA RATON Boca Raton (bō`kə rətōn`), city (1990 pop. 61,492), Palm Beach co., SE Fla., on the Atlantic; inc. 1925. Boca Raton is a popular resort and retirement community that experienced significant industrial development in the 1970s and 80s. , Fla.--(BUSINESS WIRE)--May 16, 1996--Bluegreen Corp. (NYSE NYSE See: New York Stock Exchange :BXG) Thursday announced that it has completed the sale of approximately $11.8 million aggregate principal amount of Class A Fixed Rate REMIC Pass-Through Certificates Pass-Through Certificates (PTCs) are instruments that evidence the ownership of two or more Equipment Trust Certificates. In other words, Equipment Trust Certificates may be bundled into a pass-through structure as a means of diversifying the asset pool and/or increasing the size in a private placement. The securities were not registered under federal or state laws and may not be reoffered or resold absent registration or an applicable exemption from registration requirements. At the date of issue, the fixed interest rate on the $11.8 million aggregate principal amount of Class A Certificates was set at 8.8%. The outstanding principal balance of the mortgage loans sold to the REMIC trust approximated $13.2 million. The REMIC, which will be serviced by the company, consists of a pool of fixed and adjustable rate Adjustable rate Applies mainly to convertible securities. Refers to interest rate or dividend that is adjusted periodically, usually according to a standard market rate outside the control of the bank or savings institution, such as that prevailing on Treasury bonds or notes. first mortgage loans secured by land property sold by Bluegreen. The fixed interest rate mortgages represent approximately 82% of the total pool, while the variable interest rate mortgages represent approximately 18%. The weighted average interest rate on the fixed and variable rate mortgages was approximately 10.55% and 13.65% respectively. A portion of the proceeds from the transaction was used to repay approximately $5.6 million of outstanding debt. An additional $263,000 was used to fund a cash reserve account. The balance of the proceeds, after payment of issuance expenses, resulted in an increase to Bluegreen's unrestricted cash of approximately $5.8 million. Bluegreen's business is about lifestyles and the choices people make concerning where they reside, where they relax and where they vacation. The company offers colorful places to live and play in 21 of the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and is headquartered in Boca Raton. CONTACT: Bluegreen Corp., Boca Raton Mary Jo Wiegand Vice President and Director of Investor Relations Investor relations The process by which the corporation communicates with its investors. 407/361-2700 |
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