Bluegreen Vacations, which sells timeshares and manages resorts in the US, announced terms for its IPO on Tuesday.
The Boca Raton, FL-based company plans to raise $110 million by offering 6.5 million shares (42% insider) at a price range of $16 to $18. At the midpoint of the proposed range, Bluegreen Vacations would command a fully diluted market value of $1.3 billion and enterprise value of $1.7 billion (11.2x EV/LTM EBITDA).
For the nine months ended September 30, 2017, total revenue rose 1% to $501 million. Gross profit increased 2% to $439 million and gross margin expanded from 86% to 88%. Adjusted EBITDA increased 11% to $113 million and adj. EBITDA margin expanded from 21% to 23%. Net income rose 20% to $59 million. As of September 30, 2017, total post-IPO debt outstanding stood at $585 million (3.9x LTM EBITDA).
Bluegreen Vacations was taken private in 2013 by BBX Capital (NYSE: BBX; 91% post-IPO stake) in a deal that valued the company's equity at about $320 million. BBX plans to sell roughly 4% of its position.
Bluegreen Vacations was founded in 1966 and booked $667 million in sales for the 12 months ended September 30, 2017. It plans to list on the NYSE under the symbol BXG. Stifel, Credit Suisse, BofA Merrill Lynch and SunTrust Robinson Humphrey are the joint bookrunners on the deal. It is expected to price during the week of November 13, 2017.
