FORM 8-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report : September 29, 1998
ASC East, Inc.
(Exact name of registrant as specified in its charter)
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Commission File Number 333-9763
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Maine 01-0503382
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
P.O. Box 450
Bethel, Maine 04217
(Address of principal executive office) (Zip Code)
(207) 824-8100
(Registrant's telephone number, including area code)
NOT APPLICABLE
(Former name, former address and former fiscal year, if changed
since last report.)
Item 5. Other Events
On September 25 1998, Grand Summit Resort Properties, Inc.
("GSRP"), an indirect wholly-owned subsidiary of ASC East, Inc.,
closed its $145,000,000 construction loan facility with TFC
Textron Financial. The proceeds of this loan will be used: (a) to
fund a portion of the development and construction costs of the
Company's Grand Summit Resort Hotel projects at the Company's
resorts at The Canyons and Steamboat; and (b) to refinance an
existing $33 million facility from TFC Textron to GSRP used to
finance construction of Grand Summit Hotels at Killington, Mt.
Snow, Sunday River and Attitash/Bear Peak.
The construction facility bears interest at the rate of
prime plus 1.5% per annum (payable monthly in arrears), subject
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to a 9.25% floor, and matures on September 24, 2002. The
principal is payable incrementally as quartershare sales are
closed at the rate of 80% of the net proceeds of each closing.
The facility is secured by mortgages against the project sites.
The facility is subject to customary covenants, representations
and warranties for this type of construction facility.
The closing of the construction facility follows the closing
of a mezzanine bridge loan to GSRP's parent corporation, American
Skiing Company Resort Properties, Inc. ("ASCRP"), from
BankBoston, N.A. and Morgan Stanley Senior Funding, Inc. in the
amount of $30 million on September 4, 1998. The bridge loan
bears interest at a rate of 14% per annum (payable monthly in
arrears) and matures on December 4, 1998. The loan is secured by
security interests in and mortgages on substantially all of
ASCRP's assets, which security interests and mortgages will not
be perfected or recorded until and unless a default occurs under
the terms of the loan. The bridge loan is also subject to
customary covenants, representations and warranties. ASCRP
presently intends to repay the bridge loan with the proceeds of
an $85 million subordinated debt financing, which it is currently
in the process of privately placing.
Pursuant to the requirements of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly authorized.
ASC EAST, INC.
Dated: September 29, 1998 By: /s/ Christopher E. Howard
Name: Christopher E. Howard
Title: Chief Administrative Officer
and Acting Chief Financial
Officer
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