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Box 450 Bethel ME 04217
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Phone: 207-824-8100 Fax: 207-824-5274
e-mail: skip@sundayriver.com
News and information
Contacts:
Skip King, Media Relations, 207-824-5020
Erik Preusse, Investor Relations, 207-824-5013
Date: 4 September 2001
Release: IMMEDIATE
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American Skiing Company Announces Completion of Financial Restructuring
Newry, Maine (4 September, 2001) - American Skiing Company (NYSE: SKI) announced
today that it has closed and funded the remaining portions of its previously
announced financial restructuring package that raises additional capital, amends
its senior credit facilities and restructures portions of its existing debt.
"The financial restructuring package, coupled with cost saving initiatives
implemented earlier in the year, is an important step as we address our
immediate financial issues and set the stage to unlock the growth potential of
our resort and real estate assets. We are looking forward to the rapidly
approaching ski season with confidence," said CFO Mark Miller. "In addition, the
restructuring resolves all of the outstanding construction and payment disputes
associated with the Steamboat Grand Hotel and allows construction on the luxury
penthouses to commence immediately, with completion expected prior to Christmas.
This settlement positions us to capitalize on demand for the quartershare
product at Steamboat and also allows us to close on a significant backlog of
sales at the hotel."
Key components of the previously announced financial restructuring package
include:
o A $30 million financing package from Oak Hill Capital Partners, L.P., and
related parties; o Amendments to the $165 million resort senior credit
facility to accommodate changes to the Company's revised business plan and
retroactively amend certain financial covenants with respect to the
Company's third quarter ended April 29, 2001;
o Amendments to the $73 million senior credit facility for American Skiing
Company Resort Properties ("ASCRP"), the Company's real estate development
subsidiary, to reduce current interest rates, extend amortization and
maturity requirements and provide $2.5 million in additional available
funds under the Tranche A component of the facility; and
o Amendments to the TFC Textron Financial senior and mezzanine loan
facilities for Grand Summit Resort Properties, a subsidiary of ASCRP, that
provide funding to facilitate a settlement agreement to resolve all the
remaining mechanics and other statutory liens associated with the
construction of the Steamboat Grand Resort Hotel and Conference Center,
amends certain covenants and releases certain collateral, reduces the cost
of the mezzanine loan and extends the maturity date of the loan pertaining
to the completion of the Steamboat Grand.
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The financial restructuring package, which was announced May 30, 2001, is a key
component of the Company's strategic plan to improve its capital structure and
enhance future operating performance.
Issuance of one million shares of the Company's common stock to Oak Hill will
take place on September 13, 2001, and the Company will receive the remaining $1
million of Oak Hill's investment on that date.
About American Skiing Company:
Headquartered in Newry, Maine, American Skiing Company is the largest operator
of alpine ski, snowboard and golf resorts in the United States. Its resorts
include Steamboat in Colorado; Killington, Mount Snow and Sugarbush in Vermont;
Sunday River and Sugarloaf/USA in Maine; Attitash Bear Peak in New Hampshire;
The Canyons in Utah; and Heavenly in California/Nevada. 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 fact are, or may be deemed to be,
forward-looking statements within the meaning of Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934. 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 our objectives, plans or goals are
or may be forward looking statements. Such forward-looking statements involve a
number of risks and uncertainties. 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 by the Company in a
press release on May 30, 2001; changes in regional and national business and
economic conditions affecting both American Skiing Company's resort operating
and real estate segments; competition and pricing pressures; failure to
effectively manage growth, business and financial condition; failure to
effectively integrate or operate recently acquired companies and assets; failure
to renew or refinance existing financial liabilities and obligations or attain
new outside financing; failure of on-mountain improvements and other capital
expenditures to generate incremental revenue; adverse weather conditions
regionally and nationally; seasonal business activity; changes to federal, state
and local land use regulations; changes to federal, state and local regulations
affecting both American Skiing Company's resort operating and real estate
segments; litigation involving anti-trust, consumer and other issues; failure to
renew land leases and forest service permits; disruptions in water supply that
would impact snowmaking operations and impact operations; the loss of any of our
executive officers or key operating personnel; control of American Skiing
Company by principal stockholders; failure to hire and retain qualified
employees; 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 Securities Exchange Act, we do not have or undertake any
obligation to publicly update any forward-looking statements to reflect
subsequent events or circumstances.
www.peaks.com