Great Wolf Resorts Inc. of Madison could lose its two-year-old resort in Mason, Ohio, if it can’t renegotiate its mortgage by the end of this month.
A dried-up credit market seems to be the culprit. The $76.8 million mortgage on the indoor water park resort matures Nov. 30. Great Wolf said in its third-quarter report that through Sept. 30, the property had $6.3 million in adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) and made $4.8 million in debt payments.
“We are disappointed with the lack of progress in our discussions with the loan’s head lender toward obtaining an extension of the loan’s maturity date,” said James Calder, chief financial officer for Madison-based Great Wolf. “The Mason resort continues to provide more than sufficient cash to service the current loan balance.”
The Great Wolf Lodge in Mason opened adjacent to the Kings Island theme park in December 2006, with more than 400 suites, an arcade and themed restaurants, along with the water park.
Great Wolf Resorts (NASDAQ: WOLF) owns and/or manages 11 Great Wolf Lodges and the Blue Harbor Resort in Sheboygan. The company posted third-quarter net income of $2.2 million, or 7 cents per share, compared with $1.8 million, or 6 cents per share, in the year-ago quarter.
Business Courier of Cincinnati is a sister publication of The Business Journal Serving Greater Milwaukee.
Source:http://www.bizjournals.com/milwaukee/stori...10/daily38.html