|VAIL, Colo., April 20, 1999 - Vail Resorts, Inc. (NYSE:
MTN) today announced that it plans to sell $150 million aggregate principal
amount of Senior Subordinated Notes due 2009. The sale of the notes will
be made in a private offering to certain qualified institutional buyers
under Rule 144A. The net proceeds to the Company from the offering will
be used to repay a portion of the indebtedness under the Company's existing
credit facility, thereby increasing the amount available for future borrowing.
Separately, the Company announced that as anticipated, it has continued to be affected by the overall weakness in the Colorado ski industry. This was largely due to the unfavorable weather patterns which began during the early part of the ski season and continued into the third quarter.
On a preliminary basis, Resort Revenues are expected to be in the range of $180 to $190 million for the third quarter compared to $170 million in the third quarter last year reflecting increases in the Company's hospitality and retail businesses and a decline in lift ticket revenues.
On a preliminary basis, earnings from resort operations before interest, income taxes, depreciation and amortization ("Resort EBITDA") are expected to be in the range of $73 to $77 million for the third quarter compared to $86 million in the third quarter last year.
The Company also announced that skier days for the season through April 18, 1999 declined approximately 3% from last year.
Adam Aron, Chairman and Chief Executive Officer, commented, "The 1998-1999 ski season has been a challenging one for our Company, beginning in October with the unfortunate fires on Vail Mountain. Aberrant weather patterns produced the second worst early season snowfall since Vail Mountain opened in 1962. This nearly unprecedented weather continued throughout the winter with snowfall in February and March being the third lowest since Vail opened, and temperatures in March being the second warmest."
The notes have not been registered under the Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. This announcement is neither an offer to sell nor a solicitation of an offer to buy any securities of Vail Resorts, Inc. Vail Resorts, Inc. is the premier mountain resort operator in North America. The Company operates the Colorado mountain resorts of Vail, Breckenridge, Keystone, and Beaver Creek.
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 which speak only as of the date hereof. Such risks and uncertainties include, but are not limited to, general business and economic conditions; competitive factors in the ski and resort industry; and the weather. Investors are also directed to other risks discussed in documents filed by the Company with the Securities and Exchange Commission.
|Also See:||Vail Resorts to Invest $59 Million in Resort Improvements This Year / July 1998|
|Vail Resorts to Acquire Grand Teton Lodge Company for Approximately $50 Million / Feb 1999|