Market Overview

Debt Refinancing to Save Six Flags $13 Million or 25 Percent of Its Annual Cash Interest Costs

Six Flags Entertainment Corporation (NYSE: SIX) announced today that it has entered into a new $1.135 billion credit facility that will reduce cash interest costs by more than $13 million annually, assuming current LIBOR rates, and provide the company with added financial flexibility, including a larger revolver and the ability to distribute incremental cash to shareholders in the form of dividends and share repurchases.

The new credit facility includes a $200 million revolver and a $75 million Term Loan A, both with five-year terms currently priced at LIBOR plus 2.25 percent, plus a seven-year $860 million Term Loan B priced at LIBOR plus 3.25 percent. The Term Loan B pricing includes a LIBOR floor of 1.0 percent. The proceeds from the new $935 million term loans were used, along with $15 million of existing cash, to retire a pre-existing $950 million term loan. Approximately 87 percent of the new term loans are not due until December 2018 and no funds were drawn from the revolver as of the date of the closing.

"The debt refinancing represents yet another positive step for the company," said John Duffey, Chief Financial Officer of Six Flags. "The new credit facility will improve cash flow, strengthen our capital structure and allow us to continue to create shareholder value."

Posted-In: News Financing

 

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