PARK CITY (Bloomberg) — General Electric Capital Corp. and Credit Suisse First Boston are arranging $230 million in refinancing loans for American Skiing Co., said David Hirasawa, an investor-relations spokesman for the operator of ski resorts.
The financing will include a revolving credit and a term loan, Hirasawa said. He declined to comment on the interest rates and maturities for the new credit. American Skiing, based in Park City, plans to complete the new loans in 60 to 90 days, it said in a filing with the U.S. Securities and Exchange Commission.
American Skiing, the operator of the Killington and Mount Snow resorts in Vermont, will use the proceeds from the loans to repay the existing credit and notes due 2006, the filing said.
The company's bank loans are rated Caa1 by Moody's Investors Service, seven levels below investment grade. Standard & Poor's ranks the company one level lower at CCC.
Money in a revolving credit can be borrowed once it's repaid; in a term loan, it can't. General Electric Capital is the financing arm of General Electric Co.