Thursday May 9, 4:48 pm Eastern Time
Press Release
SOURCE: American Skiing Company
American Skiing Company Closes on Sale of Heavenly Resort
NEWRY, Maine, May 9 /PRNewswire-FirstCall/ -- American Skiing Company (OTC Bulletin Board: AESK - news) announced today that it has closed on its previously announced sale of Heavenly ski resort in South Lake Tahoe, California to Vail Resorts, Inc.
"The closing of the Heavenly sale is the final major element of the restructuring plan we implemented last year," said CEO B.J. Fair. "The sale significantly reduces debt and places the resort company on more stable financial footing. The completion of this transaction, coupled with cost reductions and performance enhancements initiated during the last year, is expected to result in improved financial performance."
American Skiing Company will use proceeds from the sale to reduce outstanding indebtedness by approximately $88.5 million. In conjunction with the closing, the Company has negotiated an amendment to its resort senior credit facility which addresses application of proceeds and provides for a term facility of $32.9 million and a revolving credit facility of $52.1 million. The existing maturity dates for the facility will not change. In addition, forward looking covenants have been adjusted to reflect the Company's ongoing operations and business plan.
The Company continues to work with its real estate lenders to negotiate amendments to its real estate credit facilities. Until the Company completes those negotiations and publicly releases information concerning them, investors should continue to refer to disclosures made in the Company's recent 10-Q filing, dated January 27, 2002, on file with the Securities Exchange Commission.
About American Skiing Company
Headquartered in Newry, Maine, American Skiing Company is one of the largest operators of alpine ski, snowboard and golf resorts in the United States. Its resorts include Killington and Mount Snow in Vermont; Sunday River and Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire; Steamboat in Colorado; and The Canyons in Utah. More information is available on the Company's Web site, www.peaks.com.
This document contains both historical and forward-looking statements. All statements other than statements of historical facts are, or may be deemed to be, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements are not based on historical facts, but rather reflect American Skiing Company's current expectations concerning future results and events. Similarly, statements that describe the Company's objectives, plans or goals are or may be forward looking statements. Such forward-looking statements involve a number of risks and uncertainties. American Skiing Company has tried wherever possible to identify such statements by using words such as "anticipate," "assume," "believe," "expect," "intend," "plan," and words and terms similar in substance in connection with any discussion of operating or financial performance. In addition to factors discussed above, other factors that could cause actual results, performances or achievements to differ materially from those projected include, but are not limited to, the following: failure to fully implement the restructuring plan outlined in Company press releases and documents on file with the Securities and Exchange Commission; the Company's substantial leverage; restrictions on the Company's ability to access sources of capital; changes in regional and national business and economic conditions affecting both American Skiing Company's resort operating and real estate segments; adverse weather conditions; failure to renew or refinance existing financial liabilities and obligations or attain new outside financing; and other factors listed from time-to-time in American Skiing Company's documents filed by the Company with the Securities Exchange Commission. The forward looking statements included in this document are made only as of the date of this document and under section 27A of the Securities Act and section 21E of the Exchange Act, American Skiing Company does not have or undertake any obligation to publicly update any forward-looking statements to reflect subsequent events or circumstances.
www.peaks.com
SOURCE: American Skiing Company |
