News » Whistler


Intrawest announced Monday it has filed documents with securities regulatory authorities in Canada and the United States for a proposed public offering of $175 million U.S. of unsecured notes, due in 2008. Intrawest intends to use the funds raised primarily to reduce bank indebtedness. The indebtedness was incurred for maintenance and capital expenditures, real estate development projects and other general corporate purposes. The balance of the net proceeds will be used for general corporate purposes, including expanding and enhancing ski operations, supporting continued growth of the company’s real estate operations and resort club operations and financing potential acquisitions and investments. The offering will be lead-managed by Goldman, Sachs & Co., with TD Securities as co-manager. Closing is expected to take place in mid-August, at which time the interest rate on the notes will be set. In June Intrawest raised $109.73 million with the offering of 3,850,000 common shares. Approximately $50 million of that money went to reduce bank and other indebtedness. The balance is intended for general corporate purposes. In other news, Intrawest completed its acquisition of the Raven Golf Group July 24. In April Intrawest announced it was acquiring 95 per cent of the Raven Golf Group. With the completion of the deal Intrawest owns 100 per cent of Raven. Former owner-operator Larry Lippon has assumed the position of president, Raven/Intrawest Golf Group. Raven develops and manages golf courses. Intrawest plans to use the Phoenix-based golf company to evaluate the acquisition or management of existing golf properties, the development of new golf properties and the building of destination golf resorts. Intrawest completed its purchase the Sandestin Golf and Beach Resort in Florida, the company’s first non-mountain resort, on July 14. On July 16 Intrawest announced completion of its alliance with Compagnie des Alpes, the giant French ski resort operator. Intrawest acquired 15.7 per cent of the common shares of CDA, while the controlling shareholder of CDA purchased one million shares of Intrawest from treasury. The CDA purchase was worth between $25 million and $30 million CDN.