American Skiing Uses Steamboat Sale to Retire Debt
Park City, UT - In conjunction with today's completion of the adjusted $239.1 million sale of its Steamboat Ski & Resort Corporation in Colorado to Intrawest Holdings S.A.R.L. and its affiliated company, Steamboat Acquisition Corp., American Skiing Company (ASC) today permanently repaid all outstanding obligations under portions of its Senior Credit Facility. This includes the $85.0 million term portion of its first lien loan and $105.0 million second lien term loan, both with Credit Suisse, GE Capital and other lenders. The company terminated all agreements relating to the second lien term loan and entered into an amendment of the $40.0 million revolving facility of its first lien loan.
The amendment to the revolving facility provides, among other things, for a reduction of the aggregate commitments available under the facility to $10.0 million and the elimination of the commitment fee thereunder, for the elimination of the annual EBITDA covenant for the fiscal quarter ending April 29, 2007, and for the approval by the revolving facility lenders of any future advances under the revolving credit facility. The company does not presently anticipate a need for additional advances under the revolving credit facility prior to the end of the fiscal quarter ending April 29, ASC's filing with the Securities and Exchange Commission today indicates.
Yesterday, ASC's subsidiary, Grand Summit Resort Properties, Inc., repaid all outstanding deferred interest obligations under its $110.0 million senior construction loan for the Steamboat Grand Resort Hotel with Textron Financial Corporation and $10.6 million subordinated construction loan with Textron Financial Corporation, and terminated all associated loan agreements.
ASC announced last month agreements to sell its Killington, Pico and Mount Snow ski resorts in Vermont, and Attitash in New Hampshire. Once those transactions are finalized, American Skiing Company's remaining ski resort holdings will include only The Canyons in Utah, and Sunday River and Sugarloaf/USA in Maine.
With the addition of Steamboat, Intrawest now owns or has significant financial interest in three Colorado ski and snowboard resort destinations: Copper Mountain, Winter Park and Steamboat. The acquisition of Steamboat also provides Intrawest with access to fee-owned real estate including certain development rights, 13 dining venues and management of the Steamboat Grand Resort Hotel.
"Steamboat's heritage and legendary terrain complement our existing portfolio of world-class mountain resorts. This acquisition increases our capacity to reach new customers and represents a significant step for Intrawest in our strategy to become the undisputed world leader in the development and management of experiential destination resorts," said Alex Wasilov, president and chief operating officer of Intrawest.
"Steamboat's success is a direct result of the combination of the experience and dedication of the management team led by Chris Diamond, a loyal employee base, a supportive community and access to some of North America's most legendary terrain," said David Barry, chief operating officer of Intrawest Mountain Resorts, United States. "To ensure a successful integration, we will work closely with the entire Steamboat team to build strong ties with resort customers as well as the local community to support and protect the Yampa Valley's unique culture, traditions and the Steamboat brand."
Steamboat began operating in 1963, and has grown into one of North America's largest mountain resorts. Today Steamboat provides more than one million visitors each winter with access to six peaks, 165 trails for all ability levels, 3,668 vertical feet serviced by 20 lifts and nearly 3,000 skiable acres of terrain.
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American Skiing Uses Steamboat Sale to Retire Debt
