New Issue: Vail Resorts prices $390 million eight-year notes at par to yield 6½%

By Paul A. Harris

Portland, Ore, April 11 - Vail Resorts, Inc. priced a $390 million issue of eight-year senior subordinated notes (Ba3/BB/) at par to yield 6½% on Monday, according to an informed source.

The yield printed at the tight end of price talk, which had been set in the 6 5/8% area.

Merrill Lynch, J.P. Morgan Securities LLC and Deutsche Bank Securities Inc. were the joint bookrunners.

Proceeds will be used to fund the tender offer for the company's 6¾ senior subordinated notes due 2014.

Vail Resorts is based in Broomfield, Colo., and operates mountain resorts through its subsidiaries.

Issuer:	Vail Resorts, Inc.
Amount:	$390 million
Maturity:	May 1, 2019
Securities:	Senior subordinated notes
Bookrunners:	Merrill Lynch, J.P. Morgan Securities LLC, Deutsche Bank Securities Inc.
Co-managers:	Wells Fargo Securities LLC, US Bancorp, Comerica Investments, BBVA Securities
Coupon:	6½%
Price:	Par
Yield:	6½%
Spread:	330 bps
Call protection:	Make-whole call at Treasuries plus 50 bps until May 1, 2014, then callable at a premium
Change-of-control put:	101%
Trade date:	April 11
Settlement date:	April 25
Ratings:	Moody's: Ba3
	Standard & Poor's: BB
Distribution:	Rule 144A with registration rights and Regulation S
Price talk:	6 5/8% area
Marketing:	Quick to market

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