Cedar Fair debt load will reach $2 billion, distribution ride expected in 2008

Posted Wednesday, May 24, 2006 10:43 AM | Contributed by Jeff

Stockholders should expect their dividends to remain steady for the next year or two while five Paramount Parks pay for themselves, according to a financial presentation from Cedar Fair Monday and interviews with officials Tuesday. Revenue aside, Cedar Fair will accumulate liabilities from the move. The purchase will grow the company's debt to almost $2 billion, with annual interest payments reaching about $100 million. Cedar Fair paid about $26 million on debt interest in 2005. Added revenues from the Paramount Parks, as well as reducing expenditures such as further expansion and park acquisition, will fund much of that debt, Kinzel said.

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