MADISON, Wis., April 30 /PRNewswire-FirstCall/ — Great Wolf Resorts, Inc. (NASDAQ:WOLF) , North America’s leading family of indoor waterpark resorts, today announced that the company has closed on a construction loan of $63.9 million to fund a portion of the total costs of the company’s Great Wolf Lodge(R) resort under construction in Concord, N.C. The four-year loan is potentially expandable to a maximum principal amount of up to $79.9 million. The Concord resort is on schedule to open in Spring 2009.
Marshall Financial Group is the lender and administrative agent for the new loan.
As of April 30, 2008, Marshall has obtained firm funding commitments from a group of lenders for approximately $63.9 million for the loan. Marshall and Great Wolf Resorts expect to continue to seek additional commitments to increase the balance of the loan toward the $79.9 million potential maximum amount over the next 90 days.
“Our ability to complete a large construction loan in this challenging credit environment underscores the confidence the financial community has in Great Wolf Resorts and the merits of this project,” commented James A. Calder, Great Wolf Resorts chief financial officer. “With the combination of this loan, cash on hand and expected cash to be provided from operations, we believe we have the liquidity to complete construction of both our Concord resort and our major expansion at our existing Grapevine resort. We will continue to explore opportunities to further increase our liquidity through borrowings on our unlevered or lower-levered assets, while maintaining a prudently leveraged balance sheet.”
“This is Marshall’s fourth loan with Great Wolf Resorts, a valued client of our company,” said Scott Anderson, Marshall’s president and chief executive officer. “We believe our ability to execute this loan in a difficult debt environment is a tribute to the strength of the Great Wolf Lodge brand.”
Forward-Looking Statements
This press release may contain forward-looking statements within the meaning of the federal securities laws. All statements, other than statements of historical facts, including, among others, statements regarding Great Wolf Resorts’ future financial position, business strategy, projected levels of growth, projected costs and projected performance and financing needs, are forward-looking statements. Those statements include statements regarding the intent, belief or current expectations of Great Wolf Resorts, Inc. and members of its management team, as well as the assumptions on which such statements are based, and generally are identified by the use of words such as “may,” “will,” “seeks,” “anticipates,” “believes,” “estimates,” “expects,” “plans,” “intends,” “should” or similar expressions. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that actual results may differ materially from those contemplated by such forward- looking statements. Many of these factors are beyond the company’s ability to control or predict. Such factors include, but are not limited to, competition in the company’s markets, changes in family vacation patterns and consumer spending habits, regional or national economic downturns, the company’s ability to attract a significant number of guests from its target markets, economic conditions in its target markets, the impact of fuel costs and other operating costs, the company’s ability to develop new resorts in desirable markets or further develop existing resorts on a timely and cost efficient basis, the company’s ability to manage growth, including the expansion of the company’s infrastructure and systems necessary to support growth, the company’s ability to manage cash and obtain additional cash required for growth, the general tightening in the U.S. lending markets as a result of the subprime loan crisis, potential accidents or injuries at its resorts, its ability to achieve or sustain profitability, downturns in its industry segment and extreme weather conditions, increases in operating costs and other expense items and costs, uninsured losses or losses in excess of the company’s insurance coverage, the company’s ability to protect its intellectual property, trade secrets and the value of its brands, current and possible future legal restrictions and requirements, and other factors discussed under Item IA (Risk Factors) in Great Wolf Resorts’ 2007 Form 10-K. We assume no duty to update these statements.
Management believes these forward-looking statements are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations. All written and oral forward-looking statements attributable to Great Wolf Resorts or persons acting on its behalf are qualified in their entirety by these cautionary statements. Further, forward-looking statements speak only as of the date they are made, and the company undertakes no obligation to update or revise forward-looking statements to reflect changed assumptions, the occurrence of unanticipated events or changes to future operating results over time unless otherwise required by law.
About Great Wolf Resorts, Inc.
Great Wolf Resorts, Inc.(R) (NASDAQ:WOLF) , Madison, Wis., is North America’s largest family of indoor waterpark resorts, and, through its subsidiaries and affiliates, owns and operates its family resorts under the Great Wolf Lodge(R) and Blue Harbor Resort(TM) brands. Great Wolf Resorts is a fully integrated resort company and owns and/or manages Great Wolf Lodge locations in: Wisconsin Dells, Wis.; Sandusky, Ohio; Traverse City, Mich.; Kansas City, Kan.; Williamsburg, Va.; the Pocono Mountains, Pa.; Niagara Falls, Ontario; Mason, Ohio; Grapevine, Texas; and Grand Mound, Wash.; and Blue Harbor Resort & Conference Center in Sheboygan, Wis. A Great Wolf Lodge currently is under construction in Concord, N.C. and a 203-suite expansion is under construction at the company’s Grapevine resort.
The company’s resorts are family-oriented destination facilities that generally feature 300 to 400 rooms and a large indoor entertainment area measuring 40,000 to 100,000 square feet. The all-suite properties offer a variety of room styles, arcade/game rooms, fitness centers, themed restaurants, spas, supervised children’s activities and other amenities. Additional information may be found on the company’s Web site at www.greatwolf.com.
Contact: Alex Lombardo Jennifer Beranek
Investors Media
(703) 573-9317 (608) 661-4754
FCMN Contact: carol@dalygray.com
Source: Great Wolf Resorts, Inc.
CONTACT: Investors, Alex Lombardo, +1-703-573-9317, or Media, Jennifer
Beranek, +1-608-661-4754, both for Great Wolf Resorts, Inc.
Web site: http://www.greatwolf.com/
