Vail Resorts $100 million add-on to price Friday via Deutsche, BofA

By Paul A. Harris

St. Louis, Mo., Nov. 14 - Vail Resorts, Inc. is headed for a Friday pricing of its $100 million add-on to its 8¾% senior subordinated notes due May 15, 2009 (Ba3/B), a syndicate source told Prospect News Wednesday. Deutsche Banc Alex. Brown and Banc of America Securities were identified as joint bookrunners. The syndicate also includes CIBC, Fleet Securities and Bear Stearns & Co., according to a source.

The company sold the original $200 million of the 8¾% notes in May 1999. They are callable beginning May 15, 2004 at 104.375, then at 102.916, 101.458 and declining to par in 2007. The notes also contain an equity clawback for 35% to May 15, 2002 at 108.75.

Proceeds from the add-on will be used to repay bank debt, the syndicate source said.

In a Wednesday press release the company announced that it entered into a new three-year revolver to replace its existing credit facility, which had been scheduled to terminate at the end of 2002. The company's subsidiary, The Vail Corp., is the borrower under the new credit facility, with Bank of America NA as agent. The new credit facility provides for debt financing up to an aggregate principal amount of $421.0 million.

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