Intrawest tackles debt with sale of Colorado ski resort
Intrawest ULC has agreed to sell one of its big ski resorts, allowing the company to ease the severity of a debt load built up during the real estate boom.
Vancouver-based Intrawest, owner of 2010 Winter Olympics co-host Whistler Blackcomb and nine other winter resorts, said it has sold Copper Mountain in Colorado to Powdr Corp., a Utah-based resort operator. Terms weren’t disclosed.
Intrawest has been trying to sell assets all year. In April company chief executive officer Bill Jensen said Copper Mountain was one he didn’t want to let go. The sale of Copper Mountain is therefore indicative of the debt difficulties at the company, according to analyst Hayley Wolff at Rochdale Securities LLC in Stamford, Conn.
Intrawest owner Fortress Investment Group LLC “bought a good portfolio of assets, they just overpaid,” said Ms. Wolff. “They’ve pushed out the debt maturities a little bit but they need cash. It’s a step in the right direction. It’s unfortunate they’ve gotten to this stage, where they’re overleveraged and not investing in the properties.”
While the price wasn’t disclosed, it is likely the biggest deal in the winter-sports business this year, Ms. Wolff said.
via Intrawest tackles debt with sale of Colorado ski resort – November 18, 2009 Wednesday – HOTELS.