Boyne Resorts completes purchase of Sunday River, Sugarloaf

Courtesy / Sugarloaf Sugarloaf in Carrabassett Valley, one of two Maine ski resorts owned by Boyne Resorts, announced a 10-year expansion. Sunday River, Boyne's other resort, announced a similar expansion earlier this month.

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By Staff

Michigan-based Boyne Resorts closed on its purchase of six mountain resorts, including Sunday River and Sugarloaf, completing the deal with Ski Resort Holdings LLC, an affiliate of Oz Real Estate.

Boyne Resorts, which announced its intentions to buy the six resorts in March, had been the long-term operator of the resorts and had leased a scenic chairlift attraction that was the seventh property included in the acquisition. It also owns three resorts in northern Michigan and Big Sky Resort in Montana.

Its portfolio of mountain properties makes it the third-largest, based on skier visits, and the most geographically diverse of all North American ski resort companies.

In addition to Sugarloaf and Sunday River, included in the transaction with Oz Real Estate are Brighton Resort in Big Cottonwood Canyon near Salt Lake City, Utah; Cypress Mountain in Vancouver, British Columbia; Gatlinburg SkyLift in Gatlinburg, Tenn.; Loon Mountain Resort in N.H.; and The Summit at Snoqualmie near Seattle, Wash.

"Having focused for several years on regaining and acquiring ownership of these resorts, today is exceptionally gratifying." Boyne Resorts President and CEO Stephen Kircher said in a statement announcing the closing. "We are proud of the achievements reflected in these acquisitions and excited about the opportunities ahead at all of our properties, as well as for our team members, guests and the communities we are part of."

Terms of the deal were not disclosed.

$400M private offering helped fund acquisition

In a March 27 news release, Boyne USA Inc. announced the pricing of a previously announced private offering of $400 million aggregate principal amount of 7.250% second lien senior secured notes due 2025. The company stated it intended to use the proceeds from the offering, together with cash on hand:

1) “to finance its previously announced acquisition of seven resort and attraction assets consisting of Brighton Resort in Big Cottonwood Canyon near Salt Lake City, Utah; Cypress Mountain in Vancouver, B.C.; Gatlinburg Sky Lift in Gatlinburg, Tennessee; Loon Mountain Resort in New Hampshire; Sugarloaf and Sunday River Resort in Maine; and The Summit at Snoqualmie near Seattle, Washington (the "Resorts Acquisition"),
2) to refinance certain existing indebtedness
3) To cover general corporate expenses including fees and expenses related to the acquisition and retiring debt.

The notes were offered only to qualified institutional buyers, according to the company’s news release at that time.