Vail Resorts ups convertibles to $575 million with greenshoe exercise

By Cady Vishniac

Detroit, Dec. 18 – Initial purchasers of Vail Resorts Inc.’s $500 million of 0% convertibles due Jan. 1, 2026 with an initial conversion premium of 47.5% have fully exercised the $75 million greenshoe, according to a Form 8-K filing with the Securities and Exchange Commission.

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%.

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.

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