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Royal Banks of Missouri Closes $25MM Credit Facility for Peak Resorts

December 28, 2018, 07:00 AM
Filed Under: Hospitality

Peak Resorts, Inc., together with its subsidiaries Hidden Valley Golf and Ski, Inc., Paoli Peaks, Inc., Snow Creek, Inc., LBO Holding, Inc. and SNH Development, Inc., as borrowers, renewed the Restated Credit Facility, Loan and Security Agreement with Royal Banks of Missouri, as lender, dated as of October 27, 2017, by entering into the First Renewal of the Restated Credit Agreement . The First Renewal Agreement maintains the borrowing capacity of $25.0 million, structured as follows: (i) a revolving loan in an amount up to $10.0 million for working capital; and (ii) a revolving loan in an amount up to $15.0 million to be used to acquire additional ski resorts.In connection with entry into the First Renewal Agreement, the Borrowers executed the renewed working line promissory note in the principal amount of $10.0 million and the renewed acquisition line promissory note in the principal amount of $15.0 million in favor of the Lender.The First Renewal Agreement and Notes are referred to collectively herein as the “Loan Documents.”

Amounts borrowed under the Loan Documents mature on December 27, 2019.The terms of the Loan Documents provide that interest on the outstanding principal amounts under the Notes shall be charged at the prime rate plus 1.0%, provided that past due amounts shall be subject to higher interest rates and late charges. The debt evidenced by the Loan Documents is secured by the assets of each of the Subsidiaries. As of December 27, 2018, nothing was outstanding under the Working Line Promissory Note, with $10.0 million unused and available, and $12.4 million was outstanding under the Acquisition Line Promissory Note, with $2.6 million unused and available.

The First Renewal Agreement additionally provides that a default under the Credit Agreement dated as of November 21, 2018 among Snow Time Acquisition, Inc., as borrower, Snow Time, Inc. and subsidiaries, as guarantors, and Cap 1 LLC, as lender, shall constitute a default under the terms of the First Renewal Agreement.




 
 







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