Whistler Blackcomb to go for $14 to $15 a share, says investor
Sellers looking to sell resort for about $300 million
By Jesse Ferreras
Want a piece of Whistler Blackcomb? Soon you may be able to pick it up for $14 to $15 a share on the Toronto Stock Exchange.
In a preliminary prospectus filed with the TSX on Oct. 8, a group of underwriters including CIBC World Markets, RBC Dominion Securities, BMO Nesbitt Burns, TD Securities Inc. and Goldman Sachs Canada Inc. puts a major stake in Whistler Blackcomb Holdings Inc. up for sale to the public.
The prospectus doesn't include a proposed share price or what stake in a new company - Whistler Blackcomb Holdings Inc - will be up for sale. However, Pat Kelly, a Whistler investor and head of the Whistler Real Estate Company, said he got a call from his stock broker who told him the price for the initial public offering (IPO) is going to be set at $14 to $15 a share, with a six to seven per cent yield on the dividend.
That means dividends could make investors anywhere from $0.84 to $1.05 for every share they own.
Once the underwriters, led by CIBC World Markets, take Whistler Blackcomb around on a "dog-and-pony show" to various investors, the company will be made available for public investment, according to Kelly.
Asked how he feels about Whistler Blackcomb going public, he said he's not surprised. He believes the point of the exercise is to help pay down the debts of the parent company, Fortress Investment Group.
"It's not surprising personally," he said. "I'm not surprised they would take their primary asset and try to pay their debts down. It would be more interesting if that money was going to be reinvested back into Whistler and the mountains.
"It's being used to pay down Intrawest and Fortress's debts, it's not going to be going back into lift operations or more capital infrastructure."
In total, 37 million shares are being made available for purchase, according to Kelly, with 21 million going to the public and outside institutions. Intrawest and Nippon Cable, which appears to have increased its stake in Whistler Blackcomb from 23 to 25 per cent, will own the remaining shares of Whistler Blackcomb Holdings.
The new company was registered Oct. 4. Intrawest CEO Bill Jensen is chair of the board of Whistler Blackcomb Holdings. Other board members include Wes Edens, principal of Fortress Investment Group LLC; John Furlong, formerly chief executive officer of the Vancouver Organizing Committee for the 2010 Olympic and Paralympic Winter Games; and Cam Neely, a former hockey player and now president of the Boston Bruins Hockey Club.
The latter two have likely been appointed to the board in order to bring credibility to the board of directors, Kelly said.
"It's not unusual to put a high profile guy on your board," he said. "Every board member should bring something to the table, operations expertise, connections with important players. Certainly when Furlong walks into a meeting, he comes with a tremendous amount of credibility, so does Cam Neely."
The prospectus provides a broad picture of Whistler Blackcomb's performance as a ski area, something that hasn't been available to the public since Fortress purchased Intrawest in 2006. Whistler Blackcomb is described as the largest and most visited ski resort in North America, representing about 11 per cent of total skier visits on the continent.
Over the last 10 years it has averaged about 11 per cent market share of skier visits in the Canadian market and an approximately 2.7 per cent market share of visits in the North American market.
Whistler Blackcomb has averaged approximately 2,070,000 skier visits a year since 1997-98, when Whistler and Blackcomb Mountains merged into a single company, excluding the most recent ski season.
In 2007-08 the resort saw approximately 2,190,000 skier visits; in 2008-09 it had approximately 1,878,000 skier visits; and in 2009-2010, the Olympic year, it had 1,667,000 skier visits, owing to Olympic aversion. Without Olympic aversion management believes Whistler Blackcomb would have had 2.15 million skier visits.
Whistler Blackcomb's revenues varied over the past three years. In 2007 they totalled approximately $218 million; in 2008, $237 million; and in 2009, $219 million. With expenditures taken into account, the company made a profit of $52 million in 2007; $60 million in 2008; and $51 million in 2009.
Lift operations were cited as the single biggest operating segment for the company, having generated about 50 per cent of the company's revenue in the 2009 fiscal year, and they represent a key revenue generator throughout the year.
Lift ticket revenue from ski operations represents approximately 85 per cent to 91 per cent of the total lift operations revenue, with the remainder generated by summer activities.
Selling points for the company include competitive strengths such as Whistler Blackcomb's citation as the continent's "premier mountain resort," as well as favourable weather and snow conditions, and infrastructure investment such as the Sea to Sky Highway improvement and increased awareness abroad after the 2010 Olympic and Paralympic Winter Games.
Investment analysts have noted that Whistler Blackcomb is not expected to grow significantly - the company doesn't own substantial real estate holdings - so it would be a conservative investment, relying on steady, continuing operations and a loyal clientele.
Whistler Blackcomb is also said to depend on key employees, and the "unanticipated departure" of any key members of the senior management team could have a "material adverse effect" on Whistler Blackcomb and its prospects.
The filing cites key managers including Intrawest CEO Bill Jensen; Whistler Blackcomb President and Chief Operating Officer Dave Brownlie; Doug Forseth, Whistler Blackcomb's senior vice-president of operations; and Stuart Rempel, Whistler Blackcomb's senior vice-president of marketing and sales.
Tuesday, October 19, 2010
Sunday, October 10, 2010
LA Mansion Selles For $50M
A Los Angeles mansion that originally listed for $85 million has sold for $50 million. It's believed to be one of the highest-priced residential real-estate sales in the U.S. so far this year.
The home, which was owned by real-estate developer Mohamed Hadid, first listed for $85 million in 2009 but most recently asked $72 million. Public records list the buyer as Sarp Turanligil, owner of a Turkey-based yacht and furniture production company. A representative for Mr. Turanligil says he never owned the home, but was managing some business for a company that bought the home and is no longer affiliated with the property. The home has changed titles twice since it was purchased in June, to two different limited-liability companies, according to public records.
The 48,000-square-foot home, known as Le Belvedere, has 11 bedrooms and 14 bathrooms as well as a ballroom that can seat 250. The home has 19 fireplaces, a 5,000-bottle wine cellar, a Turkish hammam, a swan pond and a 70-foot long infinity pool. The estate, on 2.2 acres in Los Angeles's Bel Air neighborhood, requires a staff of about 15, says Mr. Hadid. "It has to be managed like a hotel," he says.
Stacy Gottula and Joyce Rey of Coldwell Banker Previews International had the listing.
Former Daly Estate Sells in Malibu:
The Malibu, Calif. home of the late philanthropist Nancy M. Daly, the ex-wife of former Los Angeles Mayor Richard Riordan, has sold for more than $40 million. It was first listed for $57 million and most recently asked $47 million.
The buyer, listed as a Delaware limited-liability company in public records, intends to lease the 13,000-square-foot mansion on Carbon Beach, according to a source with knowledge of the deal. Neighbors on "Billionaire's Beach" include Microsoft co-founder Paul Allen, David Geffen and Jeffrey Katzenberg. The home, on 0.75 acre with 180 feet of beach frontage, has eight bedrooms, nine fireplaces and a double-height living room with glass doors which slide into a wall. There's also a pool and a sports court. Ms. Daly built the mansion in 2002 after buying the three lots comprising the estate in the 1990s.
Ron de Salvo and Chris Cortazzo of Coldwell Banker Previews International shared the listing.
NFL's Buoniconti Cuts Asking Price on Florida Home
NFL Hall of Famer Nick Buoniconti has trimmed the asking price for his Coral Gables, Fla. home by 18% to $3.48 million.
The former Miami Dolphins linebacker who helped host HBO's "Inside the NFL" in 2005 bought the French-style villa with guest house—the total square footage is 4,600—for $1.98 million. He says his wife Lynn renovated the home anticipating they would move from their Key Biscayne home but "we couldn't leave the water."
Audrey Ross of EWM Realtors has the listing.
Corrections and Amplifications
The Los Angeles mansion known as Le Belvedere that sold for $50 million has changed titles twice since it was purchased in June, to two different limited-liability companies, according to public records. In addition, Stacy Gottula and Joyce Rey of Coldwell Banker Previews International shared the listing. An earlier version of this article incorrectly called the firms limited-liability corporations and cited only Ms. Rey as a listing agent.
—Candace Jackson and Juliet Chung
The home, which was owned by real-estate developer Mohamed Hadid, first listed for $85 million in 2009 but most recently asked $72 million. Public records list the buyer as Sarp Turanligil, owner of a Turkey-based yacht and furniture production company. A representative for Mr. Turanligil says he never owned the home, but was managing some business for a company that bought the home and is no longer affiliated with the property. The home has changed titles twice since it was purchased in June, to two different limited-liability companies, according to public records.
The 48,000-square-foot home, known as Le Belvedere, has 11 bedrooms and 14 bathrooms as well as a ballroom that can seat 250. The home has 19 fireplaces, a 5,000-bottle wine cellar, a Turkish hammam, a swan pond and a 70-foot long infinity pool. The estate, on 2.2 acres in Los Angeles's Bel Air neighborhood, requires a staff of about 15, says Mr. Hadid. "It has to be managed like a hotel," he says.
Stacy Gottula and Joyce Rey of Coldwell Banker Previews International had the listing.
Former Daly Estate Sells in Malibu:
The Malibu, Calif. home of the late philanthropist Nancy M. Daly, the ex-wife of former Los Angeles Mayor Richard Riordan, has sold for more than $40 million. It was first listed for $57 million and most recently asked $47 million.
The buyer, listed as a Delaware limited-liability company in public records, intends to lease the 13,000-square-foot mansion on Carbon Beach, according to a source with knowledge of the deal. Neighbors on "Billionaire's Beach" include Microsoft co-founder Paul Allen, David Geffen and Jeffrey Katzenberg. The home, on 0.75 acre with 180 feet of beach frontage, has eight bedrooms, nine fireplaces and a double-height living room with glass doors which slide into a wall. There's also a pool and a sports court. Ms. Daly built the mansion in 2002 after buying the three lots comprising the estate in the 1990s.
Ron de Salvo and Chris Cortazzo of Coldwell Banker Previews International shared the listing.
NFL's Buoniconti Cuts Asking Price on Florida Home
NFL Hall of Famer Nick Buoniconti has trimmed the asking price for his Coral Gables, Fla. home by 18% to $3.48 million.
The former Miami Dolphins linebacker who helped host HBO's "Inside the NFL" in 2005 bought the French-style villa with guest house—the total square footage is 4,600—for $1.98 million. He says his wife Lynn renovated the home anticipating they would move from their Key Biscayne home but "we couldn't leave the water."
Audrey Ross of EWM Realtors has the listing.
Corrections and Amplifications
The Los Angeles mansion known as Le Belvedere that sold for $50 million has changed titles twice since it was purchased in June, to two different limited-liability companies, according to public records. In addition, Stacy Gottula and Joyce Rey of Coldwell Banker Previews International shared the listing. An earlier version of this article incorrectly called the firms limited-liability corporations and cited only Ms. Rey as a listing agent.
—Candace Jackson and Juliet Chung
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