Vail Resorts gathers needed consents to amend $390 million 6¾% notes

By Susanna Moon

Chicago, April 25 - Vail Resorts, Inc. said that investors tendered $346,063,000, or 88.73%, of its $390 million principal amount of 6¾% senior subordinated notes due 2014 by the early tender deadline of 5 p.m. ET on April 22.

The tendered amount was sufficient to approve the proposed amendments to the notes and, as a result, the company executed a supplemental indenture to amend the indenture, according to a press release.

Vail also said it will redeem any remaining notes on May 25 at 101.125 plus accrued interest to but not including the redemption date.

The company solicited consents to amend the notes to eliminate most of the restrictive covenants and some events of default. Adoption of the proposed amendments required consents from holders of at least a majority of the outstanding notes.

The company said it was to settle the tendered notes on April 25.

The total payment will be $1,013.75 for each $1,000 principal amount of notes tendered by the consent payment date, including a consent fee of $10.00 per note.

Holders also will receive accrued interest up to but not including the settlement date.

The tender offer will continue until 8 a.m. ET on May 9.

Holders who tender notes must also deliver consents, and holders may not revoke consents without withdrawing their tendered notes.

Tendered notes may not be withdrawn after the consent deadline.

Completion of the tender offer and the consent solicitation is conditioned on execution of a supplemental indenture and securing financing that will be enough to help fund the purchase of the offer.

The company said on April 25 that it completed its private offering of $390 million principal amount of 6½% senior subordinated notes due 2019.

Merrill Lynch (888 292-0070 and collect 980 388-9217) is the dealer manager and solicitation agent, and Global Bondholder Services Corp. (866 540-1500 or banks and brokerage call 212 430-3774) is the depositary and information agent.

Vail Resorts is based in Broomfield, Colo., and operates mountain resorts through its subsidiaries.

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