by The Editors on April 10, 2017
Resort consolidation ratchets up a notch as Aspen Skiing Co. and private equity firm KSL Capital Partners have paid a reported $1.5 billion for Intrawest. In the deal Aspen/KSL picks up Steamboat, Winter Park, Tremblant, Stratton, Snowshoe, Blue Mountain and (through partnership with KSL) Squaw Valley and Alpine Meadows, according to a story in the Denver Post.
Intrawest once ruled the resort real estate game, but has fallen on hard times recently. Guess, this is as good a deal as they could have hoped for and as far as we can tell it rarely matter who owns the resorts we ride. Mountains are mountains.
[Link: Denver Post]
by The Editors on January 26, 2011
Intrawest, the former majority owner of Whistler-Blackcomb and Mammoth Mountain, and current owner of six resort properties (including Steamboat, Winter Park, and Stratton), apparently announced that after getting out from under Whistler in October they’re moving their corporate offices to Colorado, according to a story in the Vancouver Sun.
An an internal memo circulated Tuesday evening and obtained by The Vancouver Sun, CEO Bill Jensen told employees that the company, the former owner of Whistler Blackcomb, will move its headquarters to Colorado from Vancouver by the end of this year. . . He said the move to a more geographically central location will be more efficient for overall business. . . “With shared services and Intrawest’s two largest resorts already in Colorado, this relocation is the logical next step to the continued growth of Intrawest, and is consistent with the company’s long-term business strategy,” he said.
It’s so good to hear stories of Intrawest doing things that make sense.
[Link: Vancouver Sun]
by The Editors on June 1, 2010
Intrawest has been busy lately trying to come up with a way to cover $4 billion in debt. Apparently one way is to sell Mountain Creek to Crystal Springs owner Eugene Mulvihill, according to a story in NJ.com. And like any developer he apparently has “big plans” for the resort.
He said he envisions an indoor water park, rain forest, hotels and retail and health food shops at the Vernon Township resort in the northwestern corner of New Jersey.
Yeah, water parks and rain forests are rad. We hear they’re the new “slope-side condo.” Wonder if they’re going to change the name back?
[Link: NJ.com via First Tracks]
by The Editors on April 28, 2010
Whistler-Blackcomb resort owner Intrawest (and its parent company Fortress Investment Group) has apparently swung successfully on the finance monkey bars once again and found a lender willing to not only pay off all their old loans, but also give them another four years to come up with $1.7 billion, according to a story on Reuters.
Details of the new loan were not released, but Intrawest, a unit of Fortress Investment Group (FIG.N), said on Tuesday that all prior lenders had been repaid in full and the new loan does not mature until 2014. . . Intrawest had been negotiating with lenders to refinance the $1.7 billion in debt taken on when Fortress purchased it in 2006. The earlier loans had been due in December.
Sounds like someone has a little more confidence than we do in Intrawest’s ability to turn resort real estate into cold hard cash. Hope there are some buyers, because they’re definitely not going to make up $1.7 billion with lift tickets and green fees.
[Link: Reuters]
by The Editors on March 1, 2010
According to a story in the Wall Street Journal Intrawest owner Fortress Investments LLC has reached an agreement with creditors to restructure its $1.4 billion debt and will not be auctioning off equity today.
The Wall Street Journal reports that the new deal will allow Intrawest owner Fortress to inject an additional $150 million of equity into the business to pay down debt and retain control of the resort company. . . The report also indicates a new $1.2-billion loan package will extend debt maturities by as long as four years and will charge a higher rate of interest than existing debt.
If you subscribe to the WSJ you can read all the details.
[Link: Wall Street Journal and Canadian Business]
by The Editors on February 18, 2010
Whistler-Blackcomb Resort’s uber-owner Fortress Investment Group LLC has been given an extension on the Intrawest asset action that was supposed to take place tomorrow February 19, 2010, according to a story on Bloomberg.com.
Creditors including the estate of collapsed bank Lehman Brothers Holdings Inc., who have sought control of Intrawest since it missed a final payment in December on a $1.4 billion loan, agreed to extend the deadline for the auction until Feb. 26, according to the person, who declined to be identified because terms are private.
Nice of them not to dirty up the Olympic proceedings with some financial realities isn’t it?
[Link: Bloomberg]
by The Editors on January 20, 2010
Creditors have foreclosed on Intrawest and are auctioning off equity in the company on February 19, 2010, according to a story in The Globe & Mail.
Banks have seized Intrawest Holdings, the owner of the Whistler ski resort that’s hosting the Olympic downhill races next month, after the resort operator missed a big debt payment, and now plan to auction the company off right in the middle of the games. . . Intrawest’s owner, Fortress Investment Group, lost control after missing a big interest payment to its lenders. The lenders, which include Lehman Brothers and Davidson Kempner, plan to auction off ownership of Intrawest on Feb. 19, according to a notice published in major newspapers. The first events of the games are scheduled for Feb. 12 and the closing ceremony is set for Feb. 28.
[Editors’ note: The following was our original post from earlier today] Investors who have loaned Intrawest close to $1.4 billion dollars say they may foreclose on the resort operator next week according to a story in the New York Post.
Sources tell The Post that creditors holding $1.4 billion of debt on Whistler owner Intrawest are planning to foreclose on the company within the next week and a half, casting a shadow on the resort, which will host the alpine events of the 2010 Olympics. “It will probably happen within 10 days,” a source said. . . The showdown comes amid an impasse between the estate of fallen investment bank Lehman Brothers, Intrawest’s largest creditor, and Intrawest owner Fortress Investment Group, the publicly traded hedge fund run by Wesley Edens. . . By forcing Intrawest into bankruptcy, Lehman and other creditors could raise several billion dollars repossessing Intrawest and selling off its various resorts.
Luckily, all the snowboard events are taking place at Cypress Mountain. . . where last week they closed because there is no snow. But not to worry. They still have 23 days to load up.
[Globe & Mail Update: Creditors have foreclosed on Intrawest (Thanks, Skin)]
[BusinessWeek Update: Creditors to auction off Equity in Intrawest Resorts on February 19, 2010]
[Link: New York Post]
by The Editors on January 19, 2010
We have to wonder about the logic of investors who loans millions of dollars to a money-losing business and then ask for a piece of the floundering company when the loans cannot be repaid, but that is exactly what some of Intrawest ULC’s creditors are asking for according to a story on Bloomberg.com.
Fortress presented lenders including Davidson Kempner Capital Management LLC and Oak Hill Advisors LP with a plan last month to swap the loan for new debt maturing in 2015, according to the people, who asked not to be identified because the talks are private. Lenders rejected the proposal, which gave them the option to convert some of the debt to equity in five years. Some lenders want equity now so they can benefit if Intrawest’s business rebounds.
Guess if you were silly enough to sink millions is ski resort real estate in the first place you might miss the fact that Intrawest probably doesn’t have much rebound in its future.
[Link: Bloomberg.com]
by The Editors on December 28, 2009
According to a story in The Globe And Mail Intrawest missed a $524 million payment to lenders due on Wednesday, December 23, 2009 and are currently in “continuing negotiations with the lenders.”
“Intrawest continues to be in active dialogue with our lenders regarding refinancing a term loan,” chief executive officer Bill Jensen said in a statement. . . Mr. Jensen said Intrawest’s customers at its resorts and property developments as well as Olympic organizers shouldn’t expect any changes, regardless of the negotiations on the loan payment and restructuring. . . “It is business as usual for Intrawest and we are providing our customers and homeowners with the memorable experiences that they have come to expect when they visit our resorts, and will continue to do so regardless of the outcome of these discussions,” he said.
Well, let’s hope it’s not exactly business as usual.
[Link: The Globe and Mail]
by The Editors on December 23, 2009
December 23, 2009 is a big day for Whistler-Blackcomb Resort owning Intrawest ULC and its parent Fortress Investment Group LLC. A reported $524 million payment on a $1.4 billion loan is due, according to a story in Businessweek. And they may not be able to make the payment.
Intrawest, which owns venues being used at the 2010 Winter Olympics, may be pushed nearer to default if it fails to make the $524 million payment after getting a 60-day extension on Oct. 23, according to the people, who asked not to identified because the loan terms are private.
But not to worry, Dave Cobb, deputy chief executive officer for the Vancouver Organizing Committee for the 2010 Winter Olympic Games says everything is fine. “Our venues are finished, preparations are nearly complete and we look forward to welcoming the world to Vancouver.”
Maybe Intrawest owner Fortress Investment Group LLC should just put tip jars all around during the Olympics and ask visitors to pitch in. That might help.
[Link: Businessweek]
