American Skiing exchanges $76.6 million new subordinated notes for convertible preferred shares

By Ted A. Knutson

Washington, Dec. 1 - American Skiing Co. said it issued to Madeleine LLC $76.6 million principal amount of new junior subordinated notes due 2012 in exchange for the investor's 10.5% repriced convertible exchangeable preferred shares.

The new notes, which are subordinated to all of the company's other debt, start out with an annual interest rate of 11.25% which gradually increases to 13% by 2012. No amortization or interest payments are required before maturity.

Provo, Utah-based American Skiing, a ski and golf resort operator, made the announcement in an 8-K filing with the Securities and Exchange Commission. The transaction was completed on Nov. 24 as part of the company's recent refinancing.

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