Refinancing Improves Financial Picture
Home Federal and the USDA Help Secure Program
The financial picture for Bogus Basin Mountain Recreation Area has improved greatly after completing a major refinancing program. Bogus Basin’s long term debt has been consolidated with Home Federal Bank, supported through a loan guarantee program from the United States Department of Agriculture. “All of our long-term lenders have worked very hard on this cooperative effort,” said Mike Shirley, General Manager. “We are especially grateful for all their cooperation in this major change.”
During the past two decades, Bogus Basin has completed more than $25-million in capital spending on upgrades and addtions. Of that $25-million, a little less than $4-million is outstanding. Bogus Basin’s annual debt service (principal and interest) has been about $1.1-million. With this new 20-year, real-estate-based loan facility and backing by the USDA, that amount has been lowered to some $500,000 annually. “It is very similar to refinancing a home with a long-term mortgage, replacing multiple short-term home improvement loans,” added Shirley. Members of Home Federal Bank’s management helped navigate and negotiate the new financing model. The refinancing package includes, in addition, $1million of working capital. Home Federal is also extending a seasonal credit line.
This change makes Bogus Basin’s financial position much more certain and sustainable in these uncertain economic times. “We are very gratified with the invaluable help of Home Federal and the USDA in this very important financial restructuring,” said Mike Shirley. “It can make all the difference for us, especially as part of an industry in which such long-term debt facilities are very rare indeed.”