Peak Resorts adds 3 ski areas for $ 76 million

Wildwood, Missouri – Peak Resorts, Inc., a publicly traded company that owns and operates a number of eastern and midwestern ski resorts including Mount Snow and Hunter Mountain in Vermont in New York, has reached a definitive agreement to acquire privately held Snow Time, Inc. for $ 76 million. in all consideration.

Snow Time owns and operates three ski resorts in Pennsylvania: Liberty Mountain Resort, Whitetail Resort, and Roundtop Mountain Resort. All three resorts are within a short drive of the Baltimore-Washington DC Market, which is home to nearly 10 million people and welcomed more than 600,000 visitors during the 2017-18 ski season. Snow Time resorts offer a total of 65 trails, over 325 skiable acres, and an average of about 700 vertical feet of terrain. Snow Time also operates two 18-hole golf courses, a 115-room hotel and 22,000-square-foot conference center at Liberty Mountain Resort, as well as more than 20 restaurants and beverages at its three resorts.

“The transformative acquisition of Snow Time provides a rare opportunity for Peak Resorts to significantly grow our business by increasing the number of destinations for our Peak Pass holders in the northeast while strengthening our presence in very attractive and densely populated markets. of Baltimore and Washington, DC, ”said Timothy D. Boyd, President and CEO of Peak Resorts. “Over more than 50 years Irvin Naylor and his team have created three exceptionally well-maintained hill stations in the southern part of Pennsylvania and we are delighted to welcome these wonderful facilities and the Snow Time team to the Peak family. Resorts. Additionally, we anticipate that adding these turnkey resorts to our portfolio ahead of the 2018/2019 ski season will translate into immediate financial benefits for Peak Resorts.

Irvin S. Naylor, Founder and President of Snow Time, added, “I am extremely happy to hand over management of Snow Time and our three hill stations to Peak Resorts. After watching the progress they continue to make at the old family business Hunter Mountain, I see Peak Resorts as the perfect operators to take Liberty, Roundtop and Whitetail to the next level. For over 50 years my team and I have made these three resorts the magnificent properties they are today and we are delighted that Peak Resorts continues to develop its appeal to the next generation and beyond.

Liberty Mountain Resort offers 22 trails and three snow parks spread over 100 skiable acres and 620 vertical feet of land served by nine ski lifts and full snow coverage, and offers night skiing and tubing, as well as a range complete with amenities, including a 115 hotel room and 18-hole golf course. Nestled near the scenic Catoctin Mountains of southeastern Pennsylvania on 400 acres, Liberty Mountain is located approximately 55 miles from Harrisburg, 70 miles from Baltimore, and 90 miles from Washington DC

Roundtop Mountain Resort offers 20 trails and two snow parks spread over 100 skiable acres and 600 vertical feet of land served by eight lifts and full snow cover, and offers night skiing, horseback riding and tubing. Roundtop is located approximately 20 miles from Harrisburg, 75 miles from Baltimore and 120 miles from Washington DC

(File photo: Whitetail Resort)

Whitetail Resort offers 23 trails, two snow parks and a half-pipe spread over 125 skiable acres and 935 vertical feet of land served by nine ski lifts with full snow cover, as well as night skiing and horseback riding, tubing and summer equipment including an 18- hole golf course. Whitetail is located approximately 90 miles from Washington DC and 95 miles from Baltimore.

Season pass holders at Liberty, Roundtop and Whitetail who had already made the decision to purchase or renew their season passes for the 2018-19 ski season were given the option to upgrade to the Peak Pass valid within 10 Peak northeast ski areas. Resorts.

Snow Time generated approximately $ 50 million in revenue and approximately $ 11 million in Adjusted EBITDA for the twelve month period ended March 31, 2018. Total consideration of $ 76 million for the acquisition includes $ 70 million payable in cash and $ 6 million payable in shares of Peak. Common stock of the station, which the company will issue to the shareholders of Snow Time. To finance the purchase, Peak Resorts has secured a two-year, $ 50 million senior secured term loan from CAP 1 LLC, which will bear interest at an annual rate of 6.95% and incur no penalties. for early repayment; and $ 20 million of proceeds from the sale of 20,000 cumulative convertible preferred shares, Series A and the issuance of related warrants to CAP 1 LLC pursuant to an existing security purchase agreement. The company plans to continue refinancing its capital structure, which it says will include replacing the $ 50 million senior secured term loan, over the next two years, although Peak Resorts may choose to extend. the term loan for a period of one year. at will.

Carol N. Valencia