Boyne purchasing the resorts they operate (Loon/River/Loaf / others)

[WJenness]

Have to assume a defensive move, so they don't find themselves getting done like Powdr did to themselves at PCMR:
http://unofficialnetworks.com/2018/...esorts-goes-from-operator-to-owner-overnight/

 

[SkiFanE]

Have to assume a defensive move, so they don't find themselves getting done like Powdr did to themselves at PCMR:
http://unofficialnetworks.com/2018/...esorts-goes-from-operator-to-owner-overnight/

Wahoo. I've been happy with Boyne and I think this will only improve things. Hopefully some $ for some needed updates.

 

[bdfreetuna]

Good. Like the way they manage their mountains.

 

[BenedictGomez]

May as well do it while interest rates are still low and access to $$$$ is easy.

 

[bdfreetuna]

May as well do it while interest rates are still low and access to $$$$ is easy.

Your complimentary Silver Investor's Kit is on it's way.

 

[machski]

Supposedly it was always their plan to reown them all. Glad they did it now, hope they have access to funding for CAPEX. The Eastern resorts need it for sure.

Sent from my XT1650 using AlpineZone mobile app

 

[benski]

Have to assume a defensive move, so they don't find themselves getting done like Powdr did to themselves at PCMR:

They could also use a calendar, to remember to fill out paperwork in time.

 

[machski]

At least in the East, they had 30 year operating Leases. Don't think this was because those leases are coming up. They had like 2 decades more on them!

 

[Jully]

At least in the East, they had 30 year operating Leases. Don't think this was because those leases are coming up. They had like 2 decades more on them!

Yup. Some were even 99 years I think (or maybe that is Triple Peaks for Sunapee). Defensive doesn't really apply. These moves and wishes were in play before Vail bought Stowe and WB and before Alterra even formed. I don't know what drove them to sell the resorts to the REIT to begin with, but either it didn't work out as they planned or whatever reason for selling evaporated and they now want to reown them.

Boyne actually got some cash from the Crystal buyout last year, right? Something like $60 million? That definitely helps with this acquisition.

 

[AdironRider]

From what I recall, there was some back and forth during the lift failures as to how ownership kinda screwed Boyne over on those.

This is probably to protect their asses and allow them to run better equipment, upgrade.

Plus its probably pretty smart business. I'm sure itll shake out as a win for them financially.

 

[mbedle]

Correct me if I am wrong, but how is this going to open up capital for upgrades? I would think that this is going to stick them with some large debt/loan payment. Unless the debt payments are significantly less per year than the lease payments, wouldn't it take years to see a buildup of cash to spend on upgrades/expansion?

 

[machski]

Yup. Some were even 99 years I think (or maybe that is Triple Peaks for Sunapee). Defensive doesn't really apply. These moves and wishes were in play before Vail bought Stowe and WB and before Alterra even formed. I don't know what drove them to sell the resorts to the REIT to begin with, but either it didn't work out as they planned or whatever reason for selling evaporated and they now want to reown them.

Boyne actually got some cash from the Crystal buyout last year, right? Something like $60 million? That definitely helps with this acquisition.

From what I can find, it was just a swap of shares between John and the balance of Boyne. John swapped all his Boyne shares for Crystal, so it sounds like mostly a paper move.

Sent from my XT1650 using AlpineZone mobile app

 

[Killingtime]

Glad they are on the Ikon Pass next year. 2 at SR, 2 at SL and 1 at Loon.

 

[Jully]

From what I can find, it was just a swap of shares between John and the balance of Boyne. John swapped all his Boyne shares for Crystal, so it sounds like mostly a paper move.

Sent from my XT1650 using AlpineZone mobile app

Ahh, shucks. That sounds right unfortunately.

 

[Jully]

Correct me if I am wrong, but how is this going to open up capital for upgrades? I would think that this is going to stick them with some large debt/loan payment. Unless the debt payments are significantly less per year than the lease payments, wouldn't it take years to see a buildup of cash to spend on upgrades/expansion?

It gives them the ability to be the sole decider of what capital improvements get made. You're right that they will now have more debt and less overall money available than a $50 billion hedge fund has. However, that hedge fund (and CNL before) had zero interest in any upgrades, hence why basically none occurred.

 

[ceo]

I've been saying for ages that Sugarloaf is in dire need of major infrastructure improvements. Hopefully that'll happen soon now that they're in the hands of an outfit that looks like they're not afraid to drop some coin on capex.