Six Flags reduces debt in bond exchange

Posted | Contributed by Jason Hammond

Six Flags Inc., the second-largest U.S. amusement-park chain, reduced its debt by about $130 million and lowered annual cash interest through a bond-exchange offer to extend maturities. Bondholders swapped $530.6 million in notes due in 2010, 2013 and 2014 for $400 million in bonds maturing in 2016, Six Flags said Thursday in a statement.

Read more from Asbury Park Press.

It looks like the new notes were issued at an interest rate of 12 1/4%.

http://biz.yahoo.com/prnews/080612/nyth050b.html?.v=1

Wow, I've heard of junk bonds but that must qualify as sh*t bonds. I guess Tony Soprano must have financed the new loan. Or else Six Flags put the debt on their credit cards.

Ouch, my credit card is like 9.2%, and that's the crappiest kind of debt you can have (but maybe it's low because I don't carry a balance). I suppose with their rating being dropped every couple of months, what can you expect?

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