American Skiing Company Secures New Real Estate Financing

Publish date:

Newry, ME, Aug. 2--American Skiing Company (NYSE: SKI) announced today the syndication and closing of a $75 million financing for its real estate development subsidiary, American Skiing Company Resort Properties, Inc.

The financing includes a syndicated facility which was increased in principal amount to $73 million from the previous $58 million facility. The agent for the facility remains Fleet National Bank.

It was just over a year ago that ASC closed an investment deal with OakHill Capital Partners which saw this Texas-based organization gain a 48.5 percent stake in the company on a fully diluted basis. Oak Hill is heavily involved in the new real estate financing, purchasing $13 million of the total. ASC also expects to issue warrants to Oak Hill for approximately six million shares of ASC stock with an exercise price of $2.50 per share.

Purchase price of the warrants will be $2 million.