SeaWorld amends revolver covenants to protect financial health

By Rebecca Melvin

New York, April 21 – SeaWorld Entertainment Inc. has amended its revolving credit facility agreement, exempting it from complying with financial maintenance covenants for the rest of the year, according to a company press release.

The change is temporary, and the company will be required to comply with such covenants starting at the first quarter of 2021.

The company also announced that it is offering $227.5 million of first-priority senior notes due 2025. The credit agreement amendment, the new notes and a previously announced increase in its revolving credit facility taken on March 10 will provide significant financial flexibility and liquidity to operate during the shutdown of its theme parks due to the Covid-19 pandemic, the company said.

For purposes of calculating compliance with the covenants in 2021, adjusted EBITDA corresponding to the last quarter of 2019 will be used for actual adjusted EBITDA.

In addition, the company will be required to comply with a quarterly minimum liquidity coverage test through no later than the third quarter of 2021.

SeaWorld is an Orlando, Fla.-based theme park operator.

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