Peak Resorts, an owner and operator of high-quality, individually branded ski resorts in the U.S., announced it has successfully closed on a $20 million line of credit for acquisition financing with a group of banks led by Royal Banks of Missouri.

Timothy D. Boyd, president and chief executive officer, said, “We expect to close on our previously announced acquisition of Hunter Mountain shortly. We will be financing the cash portion of the transaction with a first mortgage of approximately $20 million secured by Hunter Mountain assets and by drawing approximately $15 million from the line of credit. The line provides us with important flexibility as we implement our roadmap for growth, which calls for a mix of organic growth, resort development and acquisitions. As we have stated, we continue to evaluate potential value-add properties for acquisition."

The line of credit is for a 12-month period with options to renew any unused portion or convert any outstanding balance to a three-year balloon loan. The interest rate on the line is prime plus 1.0 percent with an annual upfront commitment fee equal to 1.0 percent of the loan amount. The line is secured primarily by Peak Resorts’ currently unencumbered resort assets.

Headquartered in Missouri, Peak Resorts is a leading owner and operator of high-quality, individually branded ski resorts in the U.S. The company currently operates 13 ski resorts primarily located in the Northeast and Midwest, 12 of which are company owned, and recently announced that it has entered into an agreement to purchase Hunter Mountain, the Catskills' premier winter resort destination.