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Box 450 Bethel ME 04217
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Phone: 207-824-8100 Fax: 207-824-5158
www.peaks.com
News and information
Contact:
Dan Kashman, Investor Relations, 207-824-5013
Skip King, Media Relations, 207-824-5020
Hollis Rafkin-Sax, For Oak Hill Capital Partners
Chatsworth Group, 914-834-1821
American Skiing Company Completes
$150 Million Investment by Oak Hill Capital Partners
Newry, Maine - August 9, 1999 -- American Skiing Company (NYSE: SKI) has closed
its previously announced $150 million investment by Oak Hill Capital Partners,
L.P., a private equity investment group. The Company also announced today that
it has received consent from its lenders to simplify its capital structure by
merging ASC East, Inc. and ASC West, Inc. into the parent company. Management
expects to complete the merger within the next sixty days.
Chairman and Chief Executive Officer of American Skiing Company, Leslie B.
Otten, stated, "The infusion of Oak Hill's capital investment greatly increases
our financial flexibility and allows us to fully implement our growth strategy.
Our entire organization is energized about the benefit of this transaction to
our resort communities, as we now have the resources to continue to execute our
development plans. The investments we have made during the past several years,
combined with those now underway, are creating a state-of-the-art resort
network, which offers the best skiing and riding experience available in each of
our markets. We are excited about the product we will be delivering to our
guests for the upcoming winter season. "
"We believe that American Skiing Company represents an outstanding investment
opportunity for Oak Hill," commented Steven B. Gruber, Managing Partner of Oak
Hill Capital Partners. "This capital will provide the Company the financial
strength to expand its leadership in the ski resort industry. We look forward to
working closely with the entire team of employees at the Company and assisting
in the execution of its strategy."
Oak Hill Capital Partners, L.P. is a $1.6 billion private equity partnership
founded by Robert M. Bass and his team of investment professionals. Oak Hill
Capital makes significant investments through acquisitions, build-ups,
recapitalizations, restructurings, strategic joint ventures and the purchase of
minority stakes across a wide range of industries. Oak Hill Capital Management,
Inc., based in New York, and Menlo Park, California, manages the partnership.
Headquartered in Newry, Maine, American Skiing Company, founded by Leslie B.
Otten, is the largest operator of alpine ski, snowboard and golf resorts in the
United States growing skier visits ten-fold over the last five years. 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.
Statements in this press release, other than statements of historical
information, are forward-looking statements that are made pursuant to the safe
harbor provisions of the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to certain risks and uncertainties that
could cause actual results to differ materially from those projected. Readers
are cautioned not to place undue reliance on these forward-looking statements
that speak only as of the date hereof. Please refer to the 'Risk Factors'
included in the form 10-K dated October 27, 1998 and the form 10-Q dated June 9,
1999, on file with the Securities and Exchange Commission.