Posted by: stiltsville | October 13, 2010

How does Wall Street spin the news?

 

white shark attack on cage in False Bay South ...

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With words… big, strange words. Following is a piece of news story from the South Florida Business Journal. I went to college, I read…  but I’ve never before seen the phrase “receivables hypothecation facility.” I can not tell if this is supposed to be good news: “we got a bunch of cash!” or bad news: “we got 15% less than we thought we had!” You tell me.

Bluegreen Corp. said it has completed a $20 million timeshare receivables hypothecation facility with National Bank of Arizona. Ward Financial Co. arranged the deal.
The Boca Raton-based timeshare and resorts company (NYSE: BXG) said the facility provided for an 85 percent advance on eligible receivables, which were pledged at closing.

Maybe the story should just be “we went to a loanshark and sold all our accounts receivable at 85-cents on the dollar.” That I could understand.

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  1. […] News How does Wall Street spin the news? […]


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