New Issue: Vail Resorts upsized $390 million 10-year notes yield 6¾%

By Paul A. Harris

St. Louis, Jan. 15 - Vail Resorts Inc. priced an upsized $390 million of 10-year senior subordinated notes (B2/B) Thursday at par to yield 6¾%, or 278 basis points over Treasuries, a market source said.

The issue, which matures Feb. 15, 2014, was increased from a planned $350 million.

Price talk was 6¾%-6 7/8%.

Banc of America Securities and Deutsche Bank Securities ran the books on the Rule 144A issue. The co-managers were Bear Stearns & Co., Lehman Brothers and US Bancorp Piper Jaffray.

Proceeds will be used to fund the tender for the company's 8¾% notes due 2009.

The company is a mountain resort operator based in Vail, Colo.

Issuer:	Vail Resorts Inc.
Amount:	$390 million (increased from $350 million)
Maturity:	Feb. 15, 2014
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities, Deutsche Bank Securities
Co-managers:	Bear Stearns & Co., Lehman Brothers, US Bancorp Piper Jaffray
Coupon:	6¾%
Price:	Par
Yield:	6¾%
Spread:	278 basis points
Call features:	Callable after Feb. 15, 2009 at 103.75, 102.25, 101.125, par on Feb. 15, 2012 and thereafter
Equity clawback:	Until Feb. 15, 2007 for 35% at 106.75
Pricing date:	Jan. 15
Settlement date:	Jan. 29 (T+9)
Ratings:	Moody's: B2
	Standard & Poor's: B
Rule 144A Cusip:	91879QAG4
Price talk:	6¾%-6 7/8%

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