A company that will play a key role in the Vancouver 2010 Olympic Games ended rampant speculation about its financial well-being Thursday by completing a deal to refinance a $1.7-billion loan – just hours before deadline.
Intrawest ULC owns and operates major tourism venues across the country but is best known for its Whistler-Blackcomb ski resort, one of the main venues for the Winter Games.
The destination-resort company received unanimous support from its existing lender group Thursday to refinance.
Intrawest CEO Bill Jensen said he’s pleased to have reached an agreement with Fortress Investment Group LLC (NYSE:FIG), “particularly given the challenges of the global credit markets.”
“The support Fortress and our lenders have shown underscores their confidence in Intrawest and will enable us to continue to execute our long-term strategic plans,” Jensen said in a statement.
“Intrawest has great assets, a sound business model and a solid track record.”
Fortress had until midnight Thursday night to refinance the debt for Intrawest amid weeks of speculation that the hedge fund wouldn’t be able to close the deal in the current world fiscal climate.
Fortress’s stock had been on a slide for the last month, closing at a low of $3.85 on Thursday.
Earlier this week, it had been reported there was one holdout among the group of lenders involved in the refinancing, and one analyst had speculated that Fortress would need to sweeten the financing deal by offering a larger stake in Intrawest than it had been prepared to give up.
While no one ever thought the mountain resort of Whistler would close, fears had been raised that failure to make a deal would mean it would be sold, leading to changes and cutbacks.
Though he couldn’t disclose the terms of the deal, a spokesman for Intrawest said no changes were planned.
“I can’t tell you the speculation that’s been around this thing. Outside of the finance group and myself in the company, nobody knew this was even going on really, other than what’s been in the papers,” said Ian Galbraith.
He said it was business as usual as the resort gears up for the winter season.
Both Vancouver and international Olympic officials had reiterated at a meeting earlier Thursday they had faith the deal would come through.
Even if it hadn’t, construction on the 2010 venues at Whistler is largely complete and they weren’t concerned a possible change in ownership at the mountain would impact the Olympics.
source: canadianpress.google.com
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