ASC Refinances $320 Million in Debt and Stock

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SAM Magazine--Park City, Utah, Dec. 2, 2004--American Skiing Company (ASC) has completed its long-sought goal of refinancing its existing resort senior credit facility and its 12 percent Senior Subordinated Notes (both due in 2006). The result is a new $230 million senior secured credit facility co-led by Credit Suisse First Boston (CSFB) and GE Commercial Finance, Commercial & Industrial Finance (CIF), with a major participation from Black Diamond Capital Management. Both CIF and Black Diamond were major players in ASC's previous credit facility.

In conjunction with the refinancing, the company has also exchanged its 10.5 percent Repriced Convertible Exchangeable Preferred Stock for junior subordinated debt due in 2012, and extended the maturity of its existing $18 million in junior subordinated notes to 2012. In aggregate, the comprehensive refinancing involves more than $320 million in debt and preferred equity securities.

The moves complete the refinancing efforts ASC announced in September. The bottom line is that ASC obtained prevailing (that is, lower) market interest rates, while also extending maturities associated with the refinanced securities by four to eight years.

Specific terms of the new facility also allow for increased levels of reinvestment in the company's resorts, so long as ASC achieves certain performance benchmarks. \