Cedar Fair announces offering of $450 million senior unsecured notes

Posted Thursday, May 29, 2014 9:04 AM | Contributed by Jeff

[Ed. note: The following is an excerpt of a press release. -J]

Cedar Fair, L.P. (NYSE: FUN) (the "Company" or "Cedar Fair") today announced that it, together with its wholly owned subsidiaries Magnum Management Corporation ("Magnum") and Canada's Wonderland Company (together with Magnum, the "Co-Issuers"), intends to commence a private offering of $450 million aggregate principal amount of senior unsecured notes due 2024 (the "Notes"). Obligations under the Notes will be guaranteed by the Company's wholly-owned subsidiaries (other than the Co-Issuers). The Company intends to use the net proceeds of the offering to redeem all of its 9.125% senior unsecured notes due 2018 (the "2018 Senior Notes"), exercise its right to satisfy and discharge the indenture governing the 2018 Senior Notes and for general corporate purposes. Completion of the offering is subject to, among other things, pricing and market conditions.

The initial issuance and sale of the Notes will not be registered under the Securities Act, and, the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.

Read the entire press release from Cedar Fair.

Thursday, May 29, 2014 9:29 AM

I would think they can do better than 9 1/8% on the interest rate. Though they may have a prepayment premium on the notes they are retiring which combined with the expenses of the new issuance would eliminate the benefit of the lower rate so they waited for the premium to be reduced.

Friday, May 30, 2014 4:14 PM

That isn't nearly as interesting to me as what they plan to do with the money.

That is a lot of cash to burn.

Friday, May 30, 2014 4:31 PM

According to the 10-Q that Cedar Fair filed earlier this month for the first quarter, the principal of the 9.125% Notes due in 2018 is $405 million. So the bulk of the proceeds of the new issuance will be used to repay that existing debt.

10Q also indicates that the existing notes have a make whole premium if repaid prior to August 1, 2014. And in terms of interest rates, CF issued $500 million in notes in March 2013 with a 5.25% interest rate.


You must be logged in to post

POP Forums - ©2018, POP World Media, LLC