02-21-2007, 11:50 AM
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Join Date: Nov 2006
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American Skiing Co. to sell Vermont resorts for $83.5M
American Skiing Co. has agreed to sell Vermont’s Killington and Pico ski resorts for $83.5 million
Quote:
MONTPELIER, Vt. — American Skiing Co. has agreed to sell Vermont’s Killington and Pico ski resorts for $83.5 million, four days after announcing the sale of Mount Snow in southern Vermont and New Hampshire’s Attitash ski area.
The sales to SP Land Co., a Dallas-based real estate investor, and POWDR Corp., a Utah-based resort company, includes all of Killington’s and Pico’s resort-owned real estate. SP Land will assume about $5 million in debt as part of the purchase.
“It’s a very important transaction for American Skiing as well as a very good transaction for Killington and Pico,” ASC President B.J. Fair said Tuesday. The sales of Killington and Pico, expected to close in 45 days, leaves American Skiing with Sugarloaf/USA and Sunday River in Maine and The Canyons, its flagship 3,700-acre resort in Park City.
American Skiing spokesman Chip Carey said its board of directors has taken no action to sell its other resorts. The company said the two latest announced sales and another in Colorado would help it repay about $305 million in debt.
SP Land acquired real estate near Killington in 2004 when American Skiing restructured its real estate debt. The company now has significant land holdings near the resort, American Skiing said.
“During the design and planning phase of the Killington Village, it became apparent that the developable real estate and resort operations should be controlled by a single owner,” Fair said.
Park City, Utah-based American skiing said sales of resorts in Vermont and New Hampshire valued at a total of $157 million, and the planned sale of a Steamboat resort to Canadian resort operator Intrawest Corp. for $265 million will allow the company to repay its $190 million in bank debt and $115 million in junior debt.
“At the end of the day, it’s a good price for the company,” Fair said.
POWDR owns Mount Bachelor in Oregon, Alpine Meadows and Boreal Mountain Resort in California and Las Vegas Ski & Snowboard Resort
The sale will not affect employees or season pass holders at Killington and Pico this season, Fair said.
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