SAM Magazine—Wildwood, Mo., Nov. 3, 2016—Peak Resorts, has completed its previously announced private placement of its Series A cumulative convertible preferred stock and warrants to purchase common stock to CAP 1 LLC, a family client of Summer Road LLC.

“We are pleased that our long-time shareholder, Summer Road, has decided to make this additional significant investment in our company,” said Tim Boyd, Peak president and CEO, back in August when the agreement was first made public. “It is a strong validation of the quality of our assets and the opportunity in front of us. This investment will significantly strengthen our balance sheet, today and into the future.”

The private placement consists of $20 million in Series A cumulative convertible preferred stock and three warrants, exercisable for 12 years, to purchase 1,538,462 shares of the company's common stock at $6.50 per share; 625,000 shares of common stock at $8 per share; and 555,556 shares of common stock at $9 per share, in each case, subject to adjustments.

The completion of this private placement also reduces debt service deposits due to EPR by $1.1 million in cash or letter of credit, and the fixed charge coverage ratio will not be measured again until on or after May 1, 2017.

These actions relieve Peak Resorts' current cash restraints stemming from ongoing delays in the release of funds raised pursuant to the United States Citizenship and Immigration Services (USCIS) EB-5 Program.

"This investment will significantly strengthen our balance sheet, ensuring that we remain properly positioned to manage ongoing operations and continue to grow market share, both organically and through acquisition," said Boyd.

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