Bulletin: Alterra Mountain Co.'s Crystal Mountain Acquisition Expands Resort Portfolio; Term Loan Rating Unchanged By Added Debt

NEW YORK (S&P Global Ratings) Sept. 6, 2018--S&P Global Ratings today said that its 'B' issuer credit rating and stable outlook on Alterra Mountain Co. are unchanged by the company's plan to issue $50 million of incremental term loan B to fund the acquisition of Crystal Mountain. Despite modest incremental leverage resulting from the proposed acquisition, credit measures will remain within our rating thresholds and the acquisition complements the company's portfolio of assets. This acquisition will establish Alterra's presence in the Seattle market, broaden the company's footprint in the Pacific Northwest where it currently operates CMH Heli-Skiing, and enhance the offerings of the Ikon Pass. Pro forma for this acquisition, we expect fiscal year 2019 adjusted debt to EBITDA to

...NEW YORK (S&P Global Ratings) Sept. 6, 2018--S&P Global Ratings today said that its 'B' issuer credit rating and stable outlook on Alterra Mountain Co. are unchanged by the company's plan to issue $50 million of incremental term loan B to fund the acquisition of Crystal Mountain. Despite modest incremental leverage resulting from the proposed acquisition, credit measures will remain within our rating thresholds and the acquisition complements the company's portfolio of assets. This acquisition will establish Alterra's presence in the Seattle market, broaden the company's footprint in the Pacific Northwest where it currently operates CMH Heli-Skiing, and enhance the offerings of the Ikon Pass. Pro forma for this acquisition, we expect fiscal year 2019 adjusted debt to EBITDA to be about 6x, which represents a good cushion compared to our downgrade threshold of mid-7x, and we expect adjusted EBITDA coverage of interest expense to be good at around 3x. However, Alterra's financial risk remains...

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