NEWRY, Maine, Jan. 11 — American Skiing Company (NYSE: SKI) today announced that American Skiing Company Resort Properties, Inc., the Company’s wholly-owned real estate subsidiary, closed a private placement of $58 million in senior secured notes. This transaction modifies the previously announced $85 million in senior secured and subordinated notes by increasing the size of the senior portion and eliminating the subordinated notes.
The $58 million in senior secured notes was fully underwritten by BankBoston through BancBoston Robertson Stephens, Inc. Recourse on the notes remains limited to the Company’s real estate subsidiaries.
The $58 million private placement completes the financing required for the final construction phases of all projects currently under development, including the Grand Summit Hotel and Sundial Lodge at The Canyons and the Grand Summit Hotel at Steamboat. Each of these three projects is progressing on plan and the Company anticipates openings next winter. In addition, this financing provides funding for the pre-construction development of the next phase of projects in the Company’s 36-month real estate development strategy.
“In the process of closing the $85 million two-tranche facility, we took advantage of our strong relationship with BankBoston to increase the size of the senior facility to $58 million and eliminate the subordinated portion, reducing the risk profile of our real estate division,” said Mark J. Miller, Chief Financial Officer. “This structure also eliminates the carrying costs associated with fully financing our future proposed projects in advance of the need for those funds. And it enables us to stay on schedule with our 36-month real estate development plan.”
Headquartered in Newry, Maine, American Skiing Company is the largest operator of alpine ski, snowboard and golf resorts in the United States. Its resorts include Steamboat in Colorado; Killington, Mount Snow and Sugarbush in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire; The Canyons in Utah; and Heavenly in California/Nevada.
Statements in this press release, other than statements of historical information, are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Readers are cautioned not to place undue reliance on these forward-looking statements which speak only as of the date hereof. Please refer to the ‘Risk Factors’ included in the Form 10-K dated October 27, 1998, on file with the Securities and Exchange Commission.