Sale of The Canyons is inked
July 1, 2008
Talisker Corp. Monday finalized its deal to buy The Canyons, an agreement that teetered for weeks as Talisker, one of the area’s biggest developers, repeatedly delayed the closing on the resort.
"We’re closed," Canyons spokesman Tim Vetter told The Park Record. "It’s better than being in limbo and I’m very excited."
According to Talisker Chief Executive Officer Jack Bistricer, "We expect to bring our brand and standard of development to this wonderful resort over the coming years."
"We, along with our team in Park City and The Canyons employees, look forward to unlocking the wonderful potential of The Canyons resort, and to our continued and growing involvement as members of the community," Bistricer said in a prepared statement.
Mike Goar, managing director of The Canyons, is expected to keep his position as resort chief.
The Toronto-based developer, which is building parts of Empire Pass, announced its intentions to purchase The Canyons from Park City-based American Skiing Company last July. Talisker has done business in Park City since 2000.
Recommended Stories For You
Talisker completed the sale June 30 by paying ASC $123 million, a document filed Monday with the Securities and Exchange Commission states.
The proceeds were received in the form of $51 million in cash and $71 million "in secured senior notes," the SEC document states.
Talisker issued the notes to Talisker Canyons Finance Company with a 15 percent annual interest rate.
The debt is secured by almost all of the assets of Talisker Canyons Finance Company, including American Skiing Company Utah stock.
"The notes are guaranteed by [The Canyons]," the report filed with the SEC states. "The guaranty of [The Canyons] is secured by a pledge of substantially all of its assets."
To further secure the debt Talisker provided The Canyons $25 million in capital.
"The notes are also guaranteed by Talisker Land Holdings, LLC, the owner of certain fee land underlying the Park City Mountain Resort and a separate 780 acre parcel of undeveloped land adjacent to The Canyons," according to the SEC document.
Talisker is a privately held company that has been working on the sale since 2007.
American Skiing Co. intends to use proceeds from the sale "in accordance with its plan of dissolution, which was approved on June 20, 2007," according to the SEC report.
The closing means ASC, which was once the largest operator of alpine resorts in North America, is effectively out of business.
Land at The Canyons is still controlled by Wolf Mountain Resorts, which will be Talisker Canyons Finance Company’s landlord at the resort.