Steamboat Homes

Scheduled to pay an initial and upfront $150 million, Fortress is set to maintain control of Intrawest. Under this plan the following will most likely occur to restructure the remaining $1.2 billion in debt. This debt will most likely be divided into a senior tranche of $800 million and a mezzanine tranche of $400 million. According to Business Week, ‘Intrawest would pay 10 percent interest on the senior debt under the agreement, while lenders are demanding as much as 17 percent for the mezzanine debt, said the [unidentified] person. The interest on the mezzanine part will depend on the payment terms, which have not been disclosed.’

So what does this mean for Fortress, Intrawest and their holdings? The Globe and Mail states that ‘for Fortress, it’s a restart from zero. Intrawest has valuable assets, such as Whistler Blackcomb, the co-host of the Olympics’ And ‘Fortress can reasonably expect to benefit from an improving real estate market.’

Related posts:

1. Intrawest completes restructuring of debt
2. Intrawest Update
3. Intrawest Foreclosure, Details and Meaning

This entry was posted on Tuesday, March 2nd, 2010 at 2:15 pm and is filed under News. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.