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Six Flags to sell $850 million eight-year secured notes this week; investor call Wednesday
By Paul A. Harris
Portland, Ore., April 16 – Six Flags Entertainment Corp. and Six Flags Theme Parks Inc. scheduled an investor call at 11 a.m. ET on Wednesday, according to market sources.
The Arlington, Tex.-based theme park operator will present its $850 million offering of senior secured notes due 2030 (Ba2/BB).
Initial guidance has the notes coming to yield in the high-6% to 7% area, a trader said.
The deal is set to price before the end of the week.
The Rule 144A and Regulation S for life notes become subject to an initial call after three years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period.
Goldman Sachs & Co. LLC is the left bookrunner. Wells Fargo Securities LLC, PNC Capital Markets LLC, Citizens Capital Markets Inc., Fifth Third Securities Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Capital One Securities Inc., HSBC Securities (USA) Inc. and Texas Capital are the joint bookrunners.
Proceeds from the notes’ sale will be used to pay off the $479 million term loan B, as well as $180 million outstanding under the revolver and up to $165 million of 2025 notes. The remainder of the proceeds, plus other sources of cash, will go for general corporate purposes, including but not limited to working capital, operating expenses, capital expenditures, debt service requirements, and payment of the pre-merger special dividend.
Six Flags underwent a merger of equals with Sandusky, Ohio-based regional amusement-resort operator Cedar Fair Entertainment Co. in November 2023. The combined company will operate as Six Flags.
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