Great Wolf Resorts Announces Maturity Date Extension on Mortgage Loan
JANUARY 26, 2009 - Great Wolf Resorts, Inc. (NASDAQ: WOLF), North America's leading family of indoor waterpark resorts, today announced that it has negotiated an extension of the maturity date to November 30, 2009 on the company's $76.8 million mortgage loan on its Mason, Ohio resort property. During the extension period, the loan will continue to bear interest at a rate of LIBOR plus 425 basis points, with a minimum rate of 6.50 percent per annum.
In addition, the company has provided the Mason mortgage loan lenders with a $15.0 million corporate guaranty and cross-collateralization on the company's Grapevine, Texas resort property. The Grapevine resort's mortgage loan is with the same lenders as the Mason mortgage loan. The corporate guaranty and cross-collateralization on the Grapevine property will remain in place until the company makes a $15.0 million principal reduction of the Mason loan over the remaining term of the loan. The company will be required to use 50 percent of the net proceeds toward the $15.0 million mandatory principal reduction, should there be certain liquidity-producing events, including the sale of majority-owned equity interest in any of the company's existing properties or the refinance of a mortgage loan on an existing property.
"We expect to satisfy the $15.0 million principal reduction through cash available from operations or from one of several potential liquidity-enhancing events we are currently exploring," said Kimberly Schaefer, chief executive officer. "We view the Mason resort as an important part of our portfolio and we expect to continue building long-term value in this property."
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