SAM Magazine-Big Sky, Mt., October 12, 2008-Boyne Resorts' recent financing agreement with CNL Lifestyle Properties (see earlier report) could lead to the sale of Montana's Big Sky ski and snowboard resort to CNL for $74 million during the next two years.

According to documents filed with the U.S. Securities and Exchange Commission (SEC) last week, CNL on Sept. 23 made an interest-bearing loan to Boyne Resorts and its subsidiaries totaling $68 million. Boyne has agreed that when the loan matures in September 2010, it may sell Big Sky to CNL for $74 million. At the closing of such a purchase, CNL would enter into a long-term lease with Boyne to operate the ski resort. CNL currently holds numerous such triple-net leases with ski resort operators across the U.S., including Boyne.

As a condition to the loan, Boyne has agreed to make improvements to Big Sky Resort, including the completion of a new maintenance facility and completion of certain environmental remediation projects. Boyne has deposited $5 million in escrow as security for payment of Boyne's obligations to complete such improvements.

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