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Six Flags, Inc. announced that following the successful conclusion of the sale of seven of its parks on April 6, 2007, it has completed the offering of net cash proceeds from the asset sale to its Tranche B Term Loan lenders, as required under the terms of its credit agreement. The Tranche B Lenders had the option to accept or reject any of the net cash proceeds offered to them.
At the time of the April 16 deadline, only .47% of the Tranche B Term Loan lenders had accepted payment. Therefore, under the terms of the credit agreement, the net cash proceeds rejected by the Tranche B Term Lenders -- approximately $268 million -- can now be used by the Company for purposes including: repaying its revolver; repurchasing its bonds; for capital expenditures; for obligations under the partnership park agreements; and for other corporate uses. The Company intends to use these net cash proceeds to further reduce its debt.
Read the press release from PR Newswire.