Cedar Fair maintains quarterly distribution

Posted | Contributed by Jeff

Cedar Fair Entertainment Company today announced the declaration of a regular quarterly cash distribution of 47.5 cents per limited-partner unit, consistent with the company’s annualized distribution rate of $1.90 per unit that was announced in March.

Read the press release from Cedar Fair.

Well, the stock didn't plummet as some analysts thought would happen after the buyout story came out, and so far, they're holding the distribution steady, which was another concern that analysts had--- that they'd end up reducing the rate of the distribution. So far, so good.
Usually talk of a buyout causes a stock to go higher - at least in the short term. Any fall might occur if/when there is no interest from private equity as some investors might interpret that as problems for the company or that growth prospects were not good. I think in this case, private equity would just have too little to gain since the company is already run pretty tightly and there's not a lot to fix.
Jeff's avatar
At least they're not Google. Have a great quarter, but not an insanely kick ass quarter, and the stock tanks 5%!
MD, the stock usually goes higher when the buyer shows interest in the company because others think that more money can be made. In this case, CF went looking for potential buyers. This indicated to several analysts that they thought their debt load (from the Paramount deal) might be too high and that they were looking for someone to help pay it down. In other words, they thought CF was looking to bail. The word also was that a potential buyer wouldn't offer an insane amount for units as you hear about in some other buyouts.

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