Vail Resorts Announces Commencement of Senior Notes Offering

Rhea-AI Summary

Vail Resorts (NYSE: MTN) has announced plans to launch a private offering of $400 million in senior notes due 2030. The notes will be unsecured senior obligations of the company and will be guaranteed by certain domestic subsidiaries.

The company plans to use the proceeds to repay borrowings under its revolving credit facility that were used to fund a $200 million share repurchase completed in June 2025. Additionally, funds will be allocated to repurchase or repay a portion of its outstanding 0.00% Convertible Senior Notes due 2026.

The notes offering will be made to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons outside the United States under Regulation S. The notes have not been registered under the Securities Act or state securities laws.

Positive

• Completed $200 million share repurchase program in June 2025
• Strategic refinancing of debt structure through new senior notes offering
• Strong asset portfolio including 37 ski resorts across North America, Switzerland, and Australia

Negative

• Taking on $400 million in new debt through senior notes offering
• Additional interest expense from new notes compared to 0.00% convertible notes being replaced

Insights

Financial Analyst

Vail Resorts restructuring debt through $400M note offering to finance share repurchases and manage maturing convertible notes.

Vail Resorts' $400 million senior notes offering represents a strategic debt restructuring move with several important financial implications. The company is effectively refinancing short-term debt (revolving credit facility) with longer-term debt (notes due 2030), while using those borrowings to fund $200 million in share repurchases and manage its 0.00% Convertible Senior Notes maturing in January 2026.

The $200 million share repurchase completed in June 2025 signals management's confidence in the company's intrinsic value and represents a significant return of capital to shareholders. This repurchase likely reduced outstanding shares by approximately 2-3%, potentially providing a modest boost to EPS.

The refinancing of the 0.00% convertible notes is particularly notable. These zero-coupon convertible notes were an attractive financing vehicle when issued, as they allowed Vail to borrow at effectively no interest cost. By repurchasing them before maturity, management is proactively addressing potential dilution risk if these notes were to convert to equity.

This financial engineering maintains Vail's financial flexibility while extending its debt maturity profile. The company is essentially trading short-term flexible debt (revolver) for longer-term fixed debt (5-year notes), suggesting management anticipates stable operations through 2030 and potentially sees advantage in locking in current interest rates. The transaction demonstrates prudent capital structure management typical of established hospitality/tourism companies like Vail Resorts.

BROOMFIELD, Colo., June 30, 2025 /PRNewswire/ -- Vail Resorts, Inc. (NYSE: MTN) today announced it intends to commence a private offering to eligible purchasers, subject to market and other conditions, of $400 million in aggregate principal amount of senior notes due 2030 (the "Notes"). The Notes will be unsecured senior obligations of the Company and will be guaranteed by certain of the Company's domestic subsidiaries (other than certain excluded subsidiaries).

The Company intends to use the proceeds from the proposed offering to repay borrowings under its revolving credit facility incurred to fund the repurchase of $200 million of its outstanding shares of common stock completed in June 2025 and the repurchase or repayment of a portion of its outstanding 0.00% Convertible Senior Notes due 2026 at or prior to their maturity on January 1, 2026, and, in each case, to pay related fees and expenses. This press release does not constitute an offer to repurchase the Company's outstanding 0.00% Convertible Senior Notes due 2026.

The Notes and the related subsidiary guarantees are being offered to persons reasonably believed to be qualified institutional buyers in an offering exempt from registration pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons outside of the United States in compliance with Regulation S under the Securities Act. The Notes and the related subsidiary guarantees have not been registered under the Securities Act, or any state securities laws, and unless so registered, may not be offered or sold in the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws.

This press release is not an offer to sell or a solicitation of an offer to buy any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering, solicitation or sale would be unlawful. This press release is being issued pursuant to and in accordance with Rule 135c under the Securities Act.

About Vail Resorts, Inc. (NYSE: MTN)

Vail Resorts is a network of the best destination and close-to-home ski resorts in the world including Vail Mountain, Breckenridge, Park City Mountain, Whistler Blackcomb, Stowe, and 32 additional resorts across North America; Andermatt-Sedrun and Crans-Montana Mountain Resort in Switzerland; and Perisher, Hotham, and Falls Creek in Australia. We are passionate about providing an Experience of a Lifetime to our team members and guests, and our EpicPromise is to reach a zero net operating footprint by 2030, support our employees and communities, and broaden engagement in our sport. Our company owns and/or manages a collection of elegant hotels under the RockResorts brand, a portfolio of vacation rentals, condominiums and branded hotels located in close proximity to our mountain destinations, as well as the Grand Teton Lodge Company in Jackson Hole, Wyo. Vail Resorts Retail operates more than 250 retail and rental locations across North America.

Forward-Looking Statements

Certain statements discussed in this press release, other than statements of historical information, are forward-looking statements within the meaning of the federal securities laws. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those projected. Such risks and uncertainties include but are not limited to unanticipated developments that prevent, delay or negatively impact the offering and other financial, operational and legal risks and uncertainties detailed from time to time in the Company's cautionary statements contained in its filings with the Securities and Exchange Commission. All forward-looking statements are expressly qualified in their entirety by these cautionary statements. All forward-looking statements in this press release are made as of the date hereof and we do not undertake any obligation to update any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by law. There can be no assurance that the proposed offering will be completed as anticipated or at all.

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SOURCE Vail Resorts, Inc.

FAQ

What is the size of Vail Resorts' (MTN) new senior notes offering in 2025?

Vail Resorts is offering $400 million in senior notes due 2030 to qualified institutional buyers.

How will Vail Resorts (MTN) use the proceeds from its 2025 senior notes offering?

The proceeds will be used to repay revolving credit facility borrowings used for a $200 million share repurchase and to repurchase/repay a portion of 0.00% Convertible Senior Notes due 2026.

What was the size of Vail Resorts' (MTN) share repurchase in June 2025?

Vail Resorts completed a $200 million share repurchase in June 2025.

When do Vail Resorts' (MTN) convertible senior notes mature?

Vail Resorts' 0.00% Convertible Senior Notes are due to mature on January 1, 2026.

How many resorts does Vail Resorts (MTN) operate?

Vail Resorts operates 37 resorts across North America, Switzerland, and Australia, including major destinations like Vail Mountain, Breckenridge, Park City Mountain, and Whistler Blackcomb.