Alterra Mountain Co. plans to issue a $50 million incremental first-lien term loan to fund the acquisition of a Utah-based ski resort, referred to as Project Eagle in this research update. We believe the acquisition will result in modest incremental leverage and slow down Alterra's deleveraging path to below our 6x upgrade threshold. As a result, we are revising our rating outlook to stable from positive. We are also affirming all ratings, including the 'B' corporate credit rating. The stable outlook reflects our forecast for pro forma adjusted debt to EBITDA (including recently completed acquisitions and the proposed Project Eagle purchase) to be in the low-6x area in fiscal 2018 ending July 31, which is well below our downgrade threshold
