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Peak Resorts Announces New Line of Credit and Refinance of Certain Existing Credit Facilities
New $10 Million Line of Credit to Provide Increased Operational Flexibility
Acquisition Line of Credit Renewed
Total Debt Outstanding Remains Unchanged
WILDWOOD, Mo. -- Peak Resorts, Inc., a leading owner and operator of high-quality, individually branded ski resorts in the U.S., 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."