Vail Resorts prices $500 million in senior notes at 5.625%

Published 30/06/2025, 22:22
Vail Resorts prices $500 million in senior notes at 5.625%

BROOMFIELD, Colo. - Vail Resorts, Inc. (NYSE:MTN), with a market capitalization of $5.8 billion, announced today it has priced $500 million in aggregate principal amount of 5.625% senior notes due 2030 at par. The offering was upsized from the originally announced amount of $400 million and is expected to close on July 2, subject to customary closing conditions. According to InvestingPro data, the company’s current total debt stands at $2.95 billion, with a concerning current ratio of 0.61.

The notes will be unsecured senior obligations of the company and will be guaranteed by certain of Vail Resorts’ domestic subsidiaries, according to the company’s statement.

Vail Resorts plans to use the proceeds to repay borrowings under its revolving credit facility that were used to fund a $200 million share repurchase completed in June 2025. The company also intends to repurchase or repay a portion of its outstanding 0.00% Convertible Senior Notes due January 1, 2026.

The notes and related subsidiary guarantees are being offered to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons outside the United States under Regulation S. The securities have not been registered under the Securities Act and may not be offered or sold in the United States without an exemption from registration requirements.

Vail Resorts operates a network of 37 ski resorts across North America, Switzerland, and Australia, including major destinations such as Vail Mountain, Breckenridge, Park City Mountain, and Whistler Blackcomb. The company also manages hotels under the RockResorts brand and operates more than 250 retail and rental locations. With a P/E ratio of 20.16 and trading slightly below its InvestingPro Fair Value, the company shows strong fundamentals with a gross profit margin of 44.5% and positive earnings forecasts for the upcoming year. For deeper insights into Vail Resorts’ financial health and growth potential, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

The information in this article is based on a press release statement from Vail Resorts.

In other recent news, Vail Resorts reported its second-quarter 2025 earnings, revealing an earnings per share (EPS) of $10.54, which exceeded analysts’ expectations of $10.17. However, the company’s revenue fell slightly short of forecasts, posting $1.3 billion against the expected $1.31 billion. Vail Resorts announced a $400 million senior notes offering to repay borrowings and repurchase or repay a portion of its outstanding convertible senior notes. UBS lowered its price target for Vail Resorts to $169, citing concerns about negative pass unit growth and potential margin pressures due to increased marketing spending. Meanwhile, Mizuho Securities expressed confidence in Vail Resorts by slightly raising the company’s price target to $216, maintaining an Outperform rating. Mizuho noted that Vail Resorts’ quarterly results aligned with expectations, with Resort EBITDA matching Wall Street’s consensus estimate. Despite a decrease in skier visits, Vail Resorts managed to grow its EBITDA by an estimated 6%, indicating strong financial management.

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