Peak Resorts Announces New Line of Credit and Refinance of Certain Existing Credit Facilities
August 30 2017 - 8:00AM
New $10 Million Line of Credit to Provide
Increased Operational FlexibilityAcquisition Line
of Credit Renewed Total Debt Outstanding
Remains Unchanged
Peak Resorts, Inc. (NASDAQ:SKIS), a leading
owner and operator of high-quality, individually branded ski
resorts in the U.S., today announced a series of refinancing
transactions with Royal Banks of Missouri that will enhance
liquidity and improve financial flexibility.
The transactions include entering into a new $10 million
revolving line of credit to be used for working capital purposes,
and a renewal of the company’s $15 million acquisition line of
credit. The company intends to roll the $9.71 million
currently outstanding under the existing $10 million three-year
term loan with Royal Banks of Missouri, which was scheduled to
mature in January of 2020, and $2.75 million of additional working
capital borrowings under the previous line of credit into the
renewed acquisition line.
With the additional $12.25 million in borrowing capacity and the
approximate $26-$27 million in cash and cash equivalents on the
company’s balance sheet as of the end of its fiscal 2018 first
quarter ended July 31, 2017, Peak has more than $38 million in
liquidity. The company’s total level of debt outstanding remains
unchanged, and all loan covenants remain the same.
Timothy D. Boyd, president and chief executive officer,
commented, “I’m pleased to announce these transactions, which
reflect our commitment to strengthening and simplifying our capital
structure. Importantly, the increased liquidity will provide us
with improved operating and financial flexibility to support our
continued growth initiatives and enhance shareholder
value.”
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 operates
14 ski resorts primarily located in the Northeast and Midwest, 13
of which are company owned.
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 ir.PeakResorts.com, or follow Peak
Resorts on Facebook (https://www.facebook.com/skipeakresorts) 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, 2017, filed with the Securities and
Exchange Commission (the “SEC”), 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:
312-690-6003
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