Cedar Fair completes refinancing of senior secured credit facilities

Posted Thursday, July 29, 2010 2:29 PM | Contributed by Jeff

[Ed. note: The following is a partial but unedited press release. -J]

Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced that it has successfully completed the refinancing of its existing senior secured credit faciltities with new senior secured credit facilities (the “2010 Senior Secured Credit Facilities”), consisting of a $260 million revolving credit facility and a $1,175 million term loan.

“By successfully refinancing our debt, we accomplished two priorities: greater certainty within our capital structure and significantly enhanced financial flexibility,” said Dick Kinzel, Cedar Fair’s chairman, president and chief executive officer. “The fact that we were able to complete a transaction like this in an uncertain economic environment is a testament to the enthusiasm our lending partners have for our business model, growth potential and value creation. We truly appreciate the strong support of our relationship banks and the debt capital markets.”

The refinancing significantly extends the maturities of the Company’s debt, with the revolving credit facility maturing in July 2015 and the senior secured term loan maturing in December 2016. “This financing provides us with long-term stability in our capital structure as our earliest debt maturity, the revolving credit facility, is five years out,” added Peter Crage, Cedar Fair’s corporate vice president of finance and chief financial officer. “In addition, we believe the new covenants offer us the necessary flexibility we need to successfully pursue our strategy, which includes continued re-investment in our parks, debt reduction, as well as distributions at an appropriate time in the future.”

The interest rate for the $1,175 million senior secured term loan will be LIBOR plus a margin of 4.0% per annum, with a LIBOR floor of 1.5%. The interest rate for borrowings under the $260 million revolving credit facility will be LIBOR plus a margin of 4.0% per annum. The 2010 Senior Secured Credit Facilities are subject to customary affirmative, negative and financial covenants.

Read the entire press release from Cedar Fair.

Thursday, July 29, 2010 3:24 PM

I thought I was a bright guy. But, maybe not. Cedar Fair is a leader in amusement parks, water parks, and "active entertainment". What is "active entertainment"?

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Thursday, July 29, 2010 3:50 PM

Cornhole. Duh.

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Friday, July 30, 2010 1:37 AM

Pay no attention to that man behind the curtain.

Last edited by CPJ, Friday, July 30, 2010 1:38 AM
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