U.S. National Whitewater Center Announces Debt Restructuring
Entities Come Together in Support of Community Asset
CHARLOTTE, NORTH CAROLINA – February 8, 2010
The U.S. National Whitewater Center (USNWC) announced today that it has restructured its debt. The not-for-profit U.S. National Whitewater Center opened in 2006 with $38 million in financing used to design and construct the outdoor recreation facility. The financing was provided by a consortium of 43 lenders including financial institutions, foundations, corporations and individuals. The lender group unanimously agreed to the new restructuring terms that provide for USNWC to pay $12.4 million over the next five years.
The restructuring is based on the debt capacity forecasted on the USNWC’s actual operating performance since opening three years ago. Over the three years the Center has been in operation, it has generated a profit from its operations. This includes a $121,000 operating profit for the fiscal year ending October 31, 2009. To date, the operating profit has not been sufficient to cover the original debt but is projected to cover the new debt structure.
“We are pleased to have completed this significant transaction and appreciate the support of the lenders and the many others who have worked to affect this restructuring. This new debt structure positions the USNWC for long-term financial success,” said Jeff Wise, USNWC Executive Director.
“The support the lenders have provided in the restructuring process and from the beginning of the project is deeply appreciated and is a reflection of the leadership these individuals and their organizations have provided to our community for many years.” said Alan Dickson, Chair of the USNWC Board of Directors and retired Board Chair of Ruddick Corporation. According to Dickson, “From the beginning, the goal was to have both private and public investment support the development and operation of the not-for-profit Whitewater Center. The vision and support by the banks, foundations, individuals, corporations and the governments from the beginning of this project has been inspiring."
The restructuring will have no impact on the Local Government Services Agreement approved in 2003 where local governments in Mecklenburg and Gaston agreed to pay $1.7 million annually to the USNWC for no more than seven years in exchange for the USNWC providing park and recreation services and amenities, economic development and swiftwater rescue training. The original proformas indicated that the LGSA payments could be waived by the USNWC since the operating revenue was projected to be sufficient to cover the operating expenses, including debt service. The USNWC has not waived any of the annual payments and is not expected to going forward.
About the U.S. National Whitewater Center
The U.S. National Whitewater Center (USNWC) is a nonprofit, outdoor recreation and adventure sports facility. Alongside mountain biking and running trails, a climbing center, mega zip line and challenge course, the Center’s unique feature is a multiple-channel, customized whitewater river for rafting and canoe/kayak enthusiasts of all abilities. The USNWC is only 15 minutes from Uptown Charlotte and provides nearly 400 acres of woodlands along the scenic Catawba River. Families, workout enthusiasts, casual observers and Olympic-caliber athletes share this world-class sports and training center. The USNWC is proud to be a U.S. Olympic Training Site.
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