Vail Resorts announces $400 million senior notes offering

BROOMFIELD, Colo. - Vail Resorts, Inc. (NYSE:MTN), a $5.8 billion market cap resort operator currently trading below its InvestingPro Fair Value, announced Monday its plan to offer $400 million in senior notes due 2030 to qualified institutional buyers and non-U.S. persons in a private placement.

The resort operator intends to use the proceeds to repay borrowings under its revolving credit facility that funded a $200 million share repurchase completed this month. Funds will also go toward repurchasing or repaying a portion of its outstanding 0.00% Convertible Senior Notes due January 1, 2026. With current total debt of $2.95 billion and a current ratio of 0.61, this refinancing comes at a crucial time for the company’s debt management strategy.

The new notes will be unsecured senior obligations guaranteed by certain domestic subsidiaries of the company. The offering is subject to market conditions and is being made under exemptions from registration requirements.

Vail Resorts operates 37 ski resorts across North America, including flagship properties Vail Mountain and Breckenridge, as well as locations in Switzerland and Australia. The company also manages hotels under the RockResorts brand and runs more than 250 retail and rental locations.

The announcement, made in a press release statement, noted that the notes have not been registered under the Securities Act and may not be offered or sold in the United States except pursuant to applicable exemptions from registration requirements.

In other recent news, Vail Resorts reported its earnings for the second quarter of 2025, surpassing analysts’ expectations with an earnings per share (EPS) of $10.54, compared to the forecasted $10.17. However, the company missed its revenue forecast, posting $1.3 billion against the expected $1.31 billion. Mizuho Securities expressed confidence in Vail Resorts, slightly raising the company’s price target from $215.00 to $216.00, maintaining an Outperform rating. The firm’s analysis highlighted that Vail Resorts’ quarterly results aligned with expectations, particularly in terms of Resort EBITDA, which matched the consensus estimate from Wall Street.

Conversely, UBS lowered its price target on Vail Resorts to $169.00 from $185.00, maintaining a Neutral rating, citing concerns about negative pass unit growth for the 2025-26 ski season. UBS also noted potential downside risks if Vail increases marketing spending to attract less committed skiers. Despite these challenges, Vail Resorts managed to grow its EBITDA by an estimated 6%, after accounting for various adjustments. The company’s fiscal 2025 net income guidance is set between $264 million and $298 million, with an EBITDA guidance of $831 million to $851 million.

These developments reflect the complexities and mixed analyst sentiments surrounding Vail Resorts’ financial performance and strategic direction. Investors are closely monitoring the company’s ability to navigate market challenges and maintain financial growth amidst fluctuating visitation numbers and macroeconomic uncertainties.

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