Intrawest Corporation today announced the closing of a private placement of US $125 million aggregate principal amount of 10.5% senior notes due February 1, 2010. The net proceeds amounted to approximately US$128.2 million. The notes were sold at a price of 104.315% of their principal amount (with effective yield to maturity of approximately 9.625%) and will be consolidated with and form a single series of securities with the US$135 million aggregate principal amount of notes bearing the same terms originally issued by the Company in January 2000.
The company intends to use the net proceeds from the sale of the notes to reduce bank indebtedness.
The statements which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties. Intrawest`s actual results could differ materially from those expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, seasonality, weather conditions, competition, general economic conditions, currency fluctuations and other risks detailed in the company`s filings with the Canadian securities regulatory authorities and the U.S. Securities and Exchange Commission.