Vail receives tenders of 96.9% of 8¾% notes

New York, Feb. 11 - Vail Resorts Inc. said 96.9% or $348.753 million of its outstanding $360 million of 8¾% senior subordinated notes due 2009 were tendered by the expiration of its offer at midnight ET on Feb. 10.

Vail says no further notes were tendered after the consent date of Jan. 27. Vail has already purchased the notes tendered by the consent deadline, paying for them on Jan. 29 and also amending the indenture for the notes to eliminate substantially all the restrictive covenants.

Vail Resorts (B2/BB-) announced on Jan. 13 it was beginning a cash tender offer for any and all of its $360 million of 8¾% senior notes due 2009.

The company set a consent deadline of 5 p.m. ET on Jan 27 and said the tender offer would expire at midnight ET on Feb. 10, with both deadlines subject to possible extension.

Vail Resorts, a Vail, Colo.-based operator of mountain resorts in the western United States, said that holders tendering their notes will be required to consent to amendments to the indentures that would eliminate substantially all restrictive covenants. Holders may not tender their notes without delivering consents or deliver consents without tendering their notes.

Vail Resorts said it would pay holders who validly tender their notes by the consent deadline $1,065.06 per $1,000 principal amount of notes, which would consist of the tender offer consideration of $1,035.06 per $1,000 principal amount plus a consent payment of $30 per $1,000 principal amount.

Holders tendering after the consent deadline but before the offer expires would receive $1,035.06 per $1,000 principal amount.

Holders also received accrued interest up to, but not including, the date of payment.

Banc of America Securities LLC (call the High Yield Special Products at 888 292-0070 or collect at 212 847-5834) and Deutsche Bank Securities Inc (call the High Yield Capital Markets collect at 212 250-5655) were be the dealer managers and solicitation agents for the offer. Global Bondholder Services was the information agent (866 873-6300 or collect at 212 430-3774).

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