BROOMFIELD, Colo. - Vail Resorts, Inc. (NYSE: NYSE:MTN) announced today its intention to offer $600 million in senior notes due 2032 to qualified institutional buyers and certain non-U.S. persons. The offering, which is subject to market conditions, involves unsecured senior obligations guaranteed by some of the company's domestic subsidiaries.
The proceeds from the sale of the notes are earmarked for the redemption of all the company's existing 6.250% Senior Notes due in 2025. The redemption will cover the principal amount of the notes as well as related fees and expenses. Vail Resorts clarified that this announcement is not a notice of redemption for those outstanding notes.
The new notes and their guarantees are to be offered in a private sale exempt from registration under the Securities Act of 1933, following Rule 144A and Regulation S. They have not been registered under the Securities Act or any state securities laws and, unless so registered, may not be sold in the United States except under an exemption from registration requirements.
Vail Resorts operates a network of destination and local ski resorts, including well-known sites like Vail Mountain, Breckenridge, and Whistler Blackcomb, as well as hospitality and retail services. The company is also committed to achieving a zero net operating footprint by 2030 through its EpicPromise initiative.
The company has not publicly disclosed any further details regarding the timing or terms of the notes offering. The information provided is based on a press release statement from Vail Resorts, Inc.
InvestingPro Insights
In light of Vail Resorts' (NYSE: MTN) recent announcement regarding their senior notes offering, a glance at the company's financial health through InvestingPro data shows a market capitalization of $7.77 billion and a Price to Earnings (P/E) ratio standing at 32.97. The company's P/E ratio for the last twelve months as of Q2 2024 is adjusted to 27.05, reflecting a market expectation of earnings growth. Despite a modest revenue growth of 0.7% in the same period, Vail Resorts maintains a solid gross profit margin of 44.23%.
InvestingPro Tips for Vail Resorts highlight a series of factors that could be of interest to investors. The management's aggressive share buyback initiative is a sign of confidence in the company's value. Additionally, Vail Resorts boasts a high shareholder yield, which includes dividends and share repurchases, indicating a commitment to returning value to shareholders. Notably, the company has a history of maintaining dividend payments for 14 consecutive years, with a dividend yield as of 2024 standing at 4.34%.
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With 12 additional InvestingPro Tips available, investors can delve deeper into factors such as the company's debt levels, earnings multiples, and the recent analysts' earnings revisions for the upcoming period. These insights could prove crucial in assessing the timing and potential success of Vail Resorts' strategic financial maneuvers.
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