Bluegreen Corporation Enters into $137.5 Million Timeshare Receivables Purchase Facility with BB&T.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. -- Bluegreen Corporation (NYSE NYSE See: New York Stock Exchange : BXG), a leading provider of Colorful Places to Live and Play(R), today announced that it has entered into a vacation ownership receivables purchase facility (the "BB&T Purchase Facility") with Branch Banking and Trust Company ("BB&T") on June 1, 2006 that allows for transfers of notes receivable pursuant to the terms of the facility and subject to certain conditions precedent for a cumulative purchase price of up to $137.5 million, on a revolving basis through May 2008. While ownership of the receivables was transferred for legal purposes, the transfer of the receivables under the facility will be accounted for as a financing transaction for financial accounting purposes. Consequently, the receivables will continue to be reflected as assets and the associated obligations will be reflected as liabilities on Bluegreen's balance sheet. Bluegreen transferred $19.5 million of receivables into this new facility on June 22, 2006, generating approximately $16.5 million in cash proceeds that will be used for general operating purposes. Bluegreen expects to transfer an additional $15.5 million of timeshare A form of shared property ownership, commonly in vacation or recreation condominium property, in which rights vest in several owners to use property for a specified period each year. receivables into this new facility within the next several days. George F. Donovan, President and Chief Executive Officer of Bluegreen(R), commented, "We are very pleased to enter into this relationship with BB&T, which we believe reflects the quality of Bluegreen's vacation ownership receivables and the promising outlook for our Resorts business. This facility, in combination with our previously announced timeshare receivables purchase facility, are expected to provide Bluegreen with approximately $198 million of remaining availability over the next 22-24 months." ABOUT BLUEGREEN CORPORATION Bluegreen Corporation (NYSE:BXG) is a leading provider of Colorful Places to Live and Play(R) through two principal operating divisions. With over 150,000 owners, Bluegreen Resorts The Bluegreen Resort Company was started in 1984, to partner with timeshare resorts. It has grown into a major player in the timeshare community. Bluegreen is traded on the New York Stock Exchange with the symbol BXG. Its primary competitor is Marriott Vacation Club International. markets a flexible, real estate-based vacation ownership plan that provides access to over 40 resorts, an exchange network of over 3,700 resorts and other vacation experiences such as cruises and hotel stays. Bluegreen Communities Bluegreen Communities™ is a publicly traded land developer on the New York Stock Exchange. Bluegreen develops planned residential communities or planned unit developments (PUDs) by acquiring large sections of unimproved land outside major U.S. has sold over 51,000 planned residential and golf community homesites in 32 states since 1985. Founded in 1966, Bluegreen is headquartered in Boca Raton, Fla., and employs over 5,000 associates. In 2005, Bluegreen ranked No. 57 on Forbes' list of The 200 Best Small Companies and No. 48 on FORTUNE's list of America's 100 Fastest Growing Companies. More information about Bluegreen is available at www.bluegreencorp.com. Statements in this release may constitute forward-looking statements and are made pursuant to the Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Provision of the Private Securities and Litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. Reform Act of 1995. Forward-looking statements are based largely on expectations and are subject to a number of risks and uncertainties including but not limited to the risks and uncertainties associated with economic, competitive and other factors affecting the Company and its operations, markets, products and services, as well as the risk that the Company will not be able to consummate sales of notes receivable under the timeshare purchase facility referred to above, and other issues detailed in the Company's SEC filings, including its most recent Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed on March 16, 2006, the Quarterly Report on Form 10-Q Form 10-Q See 10-Q. filed May 10, 2006, and the Current Report on Form 8-K Form 8-K The form required by the SEC when a publicly held company incurs any event that might affect its financial situation or the share value of its stock. Form 8-K See 8-K. filed June 9, 2006. |
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