Subsequent Event

12 Months Ended

Dec. 31, 2015

Note 26. Subsequent Events

Acquisition of the Maligne Lake Tours Business

On January 4, 2016, Viad acquired the business of Maligne Tours Ltd. (“Maligne Lake Tours”), which provides interpretive boat tours and related services at Maligne Lake, the largest lake in Jasper National Park. Maligne Lake Tours has seven tour boats operating seasonally from May through October, a marina and day lodge that offers food and beverage and retail services, a historic chalet complex that is available for catered special events, and a historic boat house that offers canoes, kayaks, and rowboats for rental. The purchase price was approximately $20.9 million Canadian dollars (approximately $15.0 million U.S. dollars) in cash, subject to certain adjustments.

Amendment to Credit Agreement

Effective February 24, 2016, Viad executed the Credit Agreement Amendment to the Company’s Credit Agreement, to modify the terms of the financial covenants and the negative covenants under the Credit Agreement related to acquisitions, restricted payments, and indebtedness.

The Credit Agreement, as amended by the Credit Agreement Amendment, includes the following revisions:

Acquisitions in the same or related lines of business are permitted if the leverage ratio, on a pro forma basis, is less than or equal to 3.00 to 1.00;

Unlimited stock dividends, distributions, and repurchases if the leverage ratio is less than or equal to 2.50 to 1.00, otherwise limited to $20 million in any calendar year;

Maintain a leverage ratio of not greater than 3.50 to 1.00;

Maintain a fixed charge coverage ratio of not less than 1.75 to 1.00; and

Unlimited unsecured indebtedness if the leverage ratio is less than or equal to 3.00 to 1.00.

Refer to Note 11 – Debt and Capital Lease Obligations for further information.