Peak Resorts, Inc. Completes Private Placement of $20 million of Cumulative Convertible Preferred Stock and Warrants
November 02 2016 - 4:15PM
Peak Resorts, Inc. (Nasdaq:SKIS), a leading
operator of high-quality, individually branded ski resorts in the
U.S., today announced the completion of its previously announced
private placement of its Series A cumulative convertible preferred
stock and warrants to purchase common stock to CAP 1 LLC, a family
client of Summer Road LLC.
The private placement consists of $20 million in Series A
cumulative convertible preferred stock and three warrants,
exercisable for 12 years, to purchase 1,538,462 shares of the
Company’s common stock at $6.50 per share; 625,000 shares of common
stock at $8.00 per share; and 555,556 shares of common stock at
$9.00 per share, in each case, subject to adjustments. FBR served
as financial advisor to Peak Resorts in the transaction.
With the completion of this private placement, also now in
effect is the previously approved Modification of Master Credit
Agreements with affiliates of EPR Properties, approved as of
October 24, 2016. With the Modification Agreement in effect,
additional debt service deposits due to EPR have been reduced to
$1.1 million in cash or letter of credit, and the fixed charge
coverage ratio will not be measured again until on or after May 1,
2017. The Modification Agreement requirement regarding the
potential future tripping of the fixed charge coverage ratio
covenant would require the Company to increase the cash or letter
of credit to a total of three months of additional interest.
These actions address the issue of Peak Resorts’ current cash
position being restrained due to ongoing delays in the release of
funds raised pursuant to the United States Citizenship and
Immigration Services (USCIS) EB-5 Program. The Company believes
that the private placement investment and Modification Agreement
debt service adjustments will increase capital levels and provide
funding for continued growth and general corporate purposes.
“We are encouraged by the vote of confidence shown in our
management, quality of assets and future opportunities,” said Tim
Boyd, president and chief executive officer of Peak Resorts, Inc.
“This investment will significantly strengthen our balance sheet,
ensuring that we remain properly positioned to manage ongoing
operations and continue to grow market share, both organically and
through acquisition.”
About Peak Resorts Headquartered in Missouri,
Peak Resorts is a leading owner and operator of high-quality,
individually branded ski resorts in the U.S. The company now
operates 14 ski resorts primarily located in the Northeast and
Midwest, 13 of which are company owned, including Hunter Mountain,
the Catskills' premier winter resort destination.
The majority of the resorts are located within 100 miles of
major metropolitan markets, including New York City, Boston,
Philadelphia, Cleveland and St. Louis, enabling day and overnight
drive accessibility. The resorts under the company's umbrella offer
a breadth of activities, services and amenities, including skiing,
snowboarding, terrain parks, tubing, dining, lodging, equipment
rentals and sales, ski and snowboard instruction and mountain
biking and other summer activities. To learn more, visit the
company’s website at PeakResorts.com, or follow Peak Resorts on
Facebook (https://www.facebook.com/skipeakresorts), Twitter or
Instagram for resort updates.
Forward-Looking Statements This news release
contains forward-looking statements regarding the future outlook
and performance of Peak Resorts, Inc., within the meaning of the
Private Securities Litigation Reform Act of 1995. These statements
are subject to a variety of risks and uncertainties that could
cause actual results to differ materially from current
expectations. These risks and uncertainties are discussed under the
caption “Risk Factors” in the company’s Annual Report on Form 10-K
for the year ended April 30, 2016, filed with the Securities and
Exchange Commission, and as updated from time to time in the
company’s filings with the SEC. Peak Resorts undertakes no
obligation to release publicly the result of any revisions to these
forward-looking statements that may be made to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events.
For Further Information:
Christi Cowdin
616-233-0500
InvestorRelations@PeakResorts.com
Peak Resorts (NASDAQ:SKIS)
Historical Stock Chart
From Aug 2024 to Sep 2024
Peak Resorts (NASDAQ:SKIS)
Historical Stock Chart
From Sep 2023 to Sep 2024