ASC, Intrawest Complete Steamboat Sale
SAM Magazine-Park City, Utah, Mar. 1, 2007-American Skiing Company (ASC) and Intrawest completed the sale of Steamboat Ski & Resort Corporation today. Purchase price at the time the deal was announced in December was $265 million. But after preliminary adjustments for working capital and debt assumed by the buyer, and income realized by ASC from this current season, final proceeds to ASC were $239.1 million.
"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."
For ASC, completion of the sale has led to a reduction in its outstanding debt. ASC has used the proceeds to repay all outstanding obligations under the $8 million term portion of its first lien loan and $105 million second lien term loan, both with Credit Suisse, GE Capital and certain other lenders. In addition, the Company entered into an amendment of the $40.0 million revolving facility of its first lien loan, reducing the aggregate commitments available under the facility to $10 million.
In addition, on Feb. 28, ASC's Grand Summit Resort Properties, Inc., repaid its deferred interest obligations under a $110.0 million senior construction loan and $10.6 million subordinated construction loan with Textron Financial Corporation with Textron Financial Corporation.
However, even with the sale of Steamboat, ASC's balance sheet still shows liabilities exceed assets by more than $400 million.