Chicago, Dec. 15 – Vail Resorts Inc. priced $500 million of 0% convertibles due Jan. 1, 2026 with an initial conversion premium of 47.5%, according to a press release.
The notes, which priced on Tuesday after the market close, were talked with a coupon of 0% to 0.5% and an initial conversion premium of 40% to 45%.
The issue carries a 13-day $75 million greenshoe option.
BofA Securities Inc. (lead left), Wells Fargo Securities LLC and Evercore are bookrunners for the Rule 144A offering.
The notes are non-callable until Jan. 1, 2024 and then subject to a 130% hurdle.
There is dividend and takeover protection.
The principal amount of the notes will be settled in cash with the excess amount to be settled in cash, shares or a combination of both at the company’s option.
Proceeds will be used for general corporate purposes.
Vail Resorts is a Broomfield, Colo.-based mountain resort operator.
| Issuer: | Vail Resorts Inc.
|
| Securities: | Convertible notes
|
| Amount: | $500 million
|
| Greenshoe: | $75 million
|
| Maturity: | Jan. 1, 2026
|
| Bookrunners: | BofA Securities Inc. (lead left), Wells Fargo Securities LLC and Evercore
|
| Coupon: | 0%
|
| Price: | Par
|
| Yield: | 0%
|
| Conversion premium: | 47.5%
|
| Conversion price: | $407.17
|
| Conversion rate: | 2.4560
|
| Call option: | Non-callable until Jan. 1, 2024 and then subject to a 130% hurdle
|
| Put option: | From July 1, 2025 at any time
|
| Pricing date: | Dec. 15
|
| Settlement date: | Dec. 18
|
| Distribution: | Rule 144A
|
| Talk: | Coupon of 0% to 0.5% and initial conversion premium of 40% to 45%
|
| Stock symbol: | NYSE: MTN
|
| Stock price: | $276.05 on Dec. 15
|
| Market cap: | $11.11 billion
|
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