Intrawest increases pricing on first- and second-lien term loans

By Sara Rosenberg

New York, Nov. 28 - Intrawest increased pricing on its $55 million five-year first-lien letter-of-credit facility (B+) and $425 million five-year first-lien term B (B+) to Libor plus 575 basis points from Libor plus 500 bps, and on its $150 million six-year second-lien term loan (CCC) to Libor plus 900 bps from talk of Libor plus 850 bps to 875 bps, according to a market source.

Also, the original issue discount on the first-lien term loan was revised to 98½ from 99 and the loan now has soft call protection of 102 in year one and 101 in year two, as opposed to just 101 soft call protection for one year, the source said.

As before, the letter-of-credit facility has no Libor floor, and the first-and second-lien term loans have a 1.25% Libor floor.

The second-lien term loan still has an original issue discount of 98 and is non-callable for one year, then at 102 in year two and 101 in year three.

Also included in the company's $650 million credit facility is a $20 million five-year super-priority revolver (B+).

Covenants on the revolver, letter-of-credit facility and term loan B include total leverage, interest coverage and capital expenditures. The second-lien loan has a total leverage covenant.

Goldman Sachs & Co. is the lead bank on the deal.

Proceeds will be used to refinance existing debt.

Leverage through the first-lien is 4.1 times and total leverage is 5.8 times.

Recommitments are due at the end of the day on Thursday, the source added.

Intrawest is an operator of ski resorts and luxury adventure travel brands, including Abercrombie & Kent.

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