Vail Resorts completes $500 million senior notes offering due 2030

Vail Resorts, Inc. (NYSE:MTN), the $6.1 billion market cap resort operator, announced Wednesday that it has completed a private placement offering of $500 million in aggregate principal amount of 5.625% senior notes due 2030. The offering was conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933. According to InvestingPro data, the company maintains a significant dividend yield of 5.51% and has maintained dividend payments for 15 consecutive years.

According to a statement based on a Securities and Exchange Commission filing, the notes are guaranteed on a senior subordinated basis by certain domestic subsidiaries of the company. The notes were issued under an indenture dated Wednesday among Vail Resorts, the guarantors, and U.S. Bank Trust Company, National Association, as trustee. With total debt standing at $2.95 billion and a current ratio of 0.61, InvestingPro analysis indicates that the company’s short-term obligations exceed its liquid assets.

The notes bear interest at a rate of 5.625% per annum and were priced at 100% of par. Interest payments will be made on January 15 and July 15 each year, beginning January 15, 2026. The notes will mature on July 15, 2030.

The company may redeem the notes, in whole or in part, at any time on or after July 15, 2027, at specified redemption prices plus accrued and unpaid interest. Prior to that date, Vail Resorts may redeem some or all of the notes at 100% of principal plus accrued interest and a make-whole premium, as outlined in the indenture. Additionally, before July 15, 2027, the company may use proceeds from certain equity offerings to redeem up to 40% of the notes at a redemption price of 105.625% of principal plus accrued interest.

The notes are senior unsecured obligations and rank equally in right of payment with existing and future senior indebtedness of Vail Resorts and the guarantors.

The indenture contains covenants restricting the company’s ability to incur liens, merge or consolidate, dispose of assets, or engage in certain sale and leaseback transactions. Certain covenants will not apply if the notes receive investment grade ratings from two specified agencies and no default has occurred.

If a change of control occurs, Vail Resorts must offer to purchase all outstanding notes at 101% of principal plus accrued interest. The indenture also includes customary events of default.

This information is based on a press release statement and details disclosed in a filing with the Securities and Exchange Commission. For investors seeking deeper insights into Vail Resorts’ debt structure and financial health, InvestingPro offers comprehensive analysis through its Pro Research Report, available as part of the platform’s coverage of 1,400+ US equities. The report includes detailed debt metrics, valuation analysis, and expert insights that help investors make informed decisions about their investments.

In other recent news, Vail Resorts has announced the pricing of $500 million in senior notes at 5.625%, an increase from the initially planned $400 million. The proceeds from this offering are intended to repay borrowings under the company’s revolving credit facility and address portions of its outstanding convertible senior notes. Additionally, Vail Resorts recently announced a plan to offer $400 million in senior notes due 2030, emphasizing its strategy to manage existing debts and fund share repurchases. In analyst updates, UBS lowered its price target for Vail Resorts to $169, citing concerns over weak pass growth and potential marketing cost pressures. Conversely, Mizuho (NYSE:MFG) Securities raised its price target slightly to $216, maintaining an Outperform rating, and noted that Vail Resorts’ EBITDA growth aligns with expectations despite challenges like a decrease in skier visits. Mizuho highlighted several adjustments affecting the company’s financial results, including cost savings and impacts from foreign exchange and mergers. These developments reflect Vail Resorts’ ongoing financial strategies and the varied perspectives from financial analysts regarding its future performance.

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