Six Flags to price $1.2 billion two-part notes offering on Thursday

By Paul A. Harris

Portland, Ore., March 30 – Six Flags Entertainment Corp. plans to price $1.2 billion of senior notes (expected ratings B2/BB-) in two tranches Thursday afternoon, trailing a late-morning conference call with investors, according to a syndicate source.

The deal includes an add-on to the 4 7/8% notes due July 31, 2027, which are callable on July 31, 2019 at 103.656. The initial price talk is 99. The original $300 million issue priced at par on June 7, 2016.

The add-on notes will become immediately fungible with original notes.

In addition Six Flags plans to price new notes due 2027, which are callable after five years at par plus 50% of coupon. The original guidance on the new notes is in the 5 3/8% area.

Tranche sizes remain to be determined.

Wells Fargo Securities LLC is the left bookrunner for the Rule 144A and Regulation S for life deal. BofA Merrill Lynch, Barclays, BBVA, Goldman Sachs & Co., HSBC Securities and J.P. Morgan Securities LLC are the joint bookrunners.

The Grand Prairie, Texas-based regional theme park operator plans to use the proceeds to fund the tender for its 5¼% notes due 2021 and for general corporate and working capital purposes, including share repurchases.

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