Transaction Will Result in Immediate Savings on First Lien Debt
WHISTLER, BC, June 25, 2012 /PRNewswire/ - Whistler Blackcomb Holdings Inc. (TSX: WB) (the "Corporation"), as the general partner of each of Whistler Blackcomb Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership (the "Partnerships"), today reported that the Partnerships have taken advantage of favourable market conditions and have agreed with the syndicate of lenders on its First Lien Credit Facility to (1) reduce the margin on the outstanding balance by 50 basis points (at the current leverage ratio) and (2) extend the maturity by six months from November 9, 2014 to May 9, 2015. As a result of the transaction, the Corporation will realize a reduction in its interest expense beginning from June 22, 2012, the date of the agreement. The First Lien Credit Facility is comprised of a term loan of $135 million and a revolving credit facility of $15 million that is currently undrawn.
In addition to amounts outstanding under the First Lien Credit Facility, the Partnerships also have $126 million outstanding under their Second Lien Notes, which mature on November 8, 2016.
Kevin Smith, Executive Vice President and Chief Financial Officer of Whistler Blackcomb Holdings Inc. stated "As part of our ongoing efforts to maximize shareholder value, I am pleased to report that we have successfully reduced our interest costs and locked in the benefit of reduced rates for an additional six months."
ABOUT WHISTLER BLACKCOMB HOLDINGS INC.
Whistler Blackcomb Holdings Inc. owns a 75% interest in each of Whistler Mountain Resort Limited Partnership and Blackcomb Skiing Enterprises Limited Partnership, which, together, carry on the four season mountain resort business located in the Resort Municipality of Whistler, British Columbia. Whistler Blackcomb, the official alpine skiing venue for the Olympic Winter Games, is situated in the Resort Municipality of Whistler located in the Coast Mountains of British Columbia 125 kilometres (78 miles) from Vancouver, British Columbia. North America's premier four-season mountain resort, Whistler Mountain and Blackcomb Mountain are two side-by-side mountains, connected by the world record-breaking PEAK 2 PEAK Gondola, which combined offer over 200 marked runs, over 8,000 acres of terrain, 14 alpine bowls, three glaciers, receive on average over 1,192 centimetres (469 inches) of snow annually, and offer one of the longest ski seasons in North America. In the summer, Whistler Blackcomb offers a variety of activities, including hiking and biking trails, the Whistler Mountain Bike Park, and sightseeing on the PEAK 2 PEAK Gondola. Whistler Blackcomb Holdings Inc. is listed on the Toronto Stock Exchange under the symbol "WB". For more information, visit www.whistlerblackcombholdings.com. Additional information related to the Corporation is available on SEDAR at www.sedar.com.
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements or information, within the meaning of applicable Canadian securities laws, including, but not limited to, the expectations, plans, goals, objectives, assumptions, information or statements about future events or conditions which may prove to be incorrect. Although the Corporation believes that the expectations reflected in such forward-looking statements and information are reasonable, undue reliance should not be placed on forward-looking statements because the Corporation can give no assurance that such expectations will prove to be correct. The forward-looking statements are based on the estimates and assumptions made by the management in light of its experience and perception of current conditions and expected future developments, and are subject to a number of significant risks and uncertainties that could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, among others, general economic, business and market conditions and other risks as are detailed in the AIF. Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as anticipated, believed, estimated or expected. These forward-looking statements are made as of the date of this press release, and the Corporation has no intention and assumes no obligation to update or revise any forward-looking statements to reflect new events or circumstances, except as required by applicable Canadian securities laws.
SOURCE Whistler Blackcomb