ASC Announces Sale of Killington/Pico
SAM Magazine--Park City, Utah, February 20, 2007--American Skiing Company (ASC) announced today that it has entered into a definitive agreement to sell its Killington and Pico resorts in Vermont to SP Land Company, a major area land owner, for $83.5 million. SP Land Company, which has been in partnership with Killington since 2004 on a large development at the base of the area, will partner with POWDR Corp in the purchase and operation of the resorts.
"During the design and planning phase of the Killington Village," says ASC president and CEO B.J. Fair, "it became apparent that the developable real estate and resort operations should be controlled by a single owner."
Fair went on to say, "With the recent announced sales of Steamboat, Mount Snow, Attitash, and now Killington and Pico, American Skiing Company is clearly in transition. We will be reviewing our organizational needs and adjusting accordingly. As a result of these transactions, the company expects to repay all bank debt, junior subordinated debt, and have substantial resources to address the needs of our Sunday River and Sugarloaf resorts in Maine and The Canyons in Utah."
Included in the sale of Killington and Pico, which is expected to close in April, are the resorts and all resort-owned operations, all resort-owned real estate and The Wobbly Barn restaurant. SP Land Company will also assume $5 million of debt and other liabilities and certain contractual obligations of ASC.
As for any future sales of ASC's remaining three resorts, ASC spokesperson Chip Carey says, "the board has not approved any other actions."