Six Flags to repay bank debt, public debt with asset sale proceeds

By Sara Rosenberg

New York, March 10 - Six Flags Inc. intends to repay both bank debt and public with proceeds from asset sales of about $345 million, a company spokesperson told Prospect News on Wednesday.

The company is selling its Worlds of Adventure theme park near Cleveland to Cedar Fair LP for $145 million in cash and its European division to a private investment firm for a purchase price of $200 million.

"While we will incur a book loss in the first quarter of 2004 on the sale of these assets of approximately $70 million in the case of Cleveland and approximately $220 million in the case of Europe, these transactions are very positive for us," said Kieran E. Burke, chairman and chief executive officer of Six Flags, in a company news release. "Taken together, they will enable us to accelerate our planned de-leveraging. We expect to utilize the proceeds of the sales primarily to reduce outstanding indebtedness, as well as to fund investments in our other parks."

Both transactions are subject to the negotiation and execution of definitive agreements and other conditions, including the buyers' completion of due diligence, a financing condition, and receipt of necessary regulatory and third party approvals.

Six Flags is an Oklahoma City regional theme park company.

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