Six Flags uses loan proceeds from Time Warner subsidiary to fund partnership parks put

By Jennifer Chiou

New York, May 15 - Six Flags, Inc. announced that it received loan proceeds from a subsidiary of Time Warner Inc. to fund about $53 million of 2009 put obligations related to its Six Flags Over Texas and Six Flags Over Georgia parks, including Six Flags White Water Atlanta.

The company previously determined that it was required to fund an estimated $59 million related to the annual obligation under which it must offer to purchase units in the limited partnerships that own the partnership parks.

As of the end of the put period on April 28, Six Flags said it had received put notices for about $66 million from holders of units in the limited partnerships that own the parks.

The general partner of the Georgia limited partnership elected to purchase Georgia units for a total purchase price of about $7 million, with an additional $6 million of obligations was funded with cash that was being held in escrow, the company said in a release.

Interest on the loan, which matures on March 15, 2011, will accrue at 14% per year.

The loan is guaranteed by Six Flags, Inc., Six Flags Operations Inc. and Six Flags Theme Parks Inc. up to an aggregate amount of $10 million.

Six Flags is a regional theme park company based in New York.

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