Six Flags seeks amendment to obtain more first-lien debt, new second-lien loan

By Sara Rosenberg

New York, April 8 - Six Flags Theme Parks Inc. is looking to amend its exit credit facility to accommodate its new plan of reorganization, under which it would get a $120 million five-year revolver, up from $100 million, a $770 million six-year term loan, up from $730 million, and a new $250 million 61/2-year second-lien term loan, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Under the amendment, the $20 million of incremental revolver commitments would be incorporated, and there would be an allowance for an additional $30 million in revolver commitments in the future.

The company would get $40 million of incremental first-lien term loan commitments that will be used to repay an existing TW loan, and pricing on the loan would be increased to Libor plus 400 basis points from Libor plus 375 bps.

The original issue discount on the first-lien term loan will be 98½ to 99, and there is a 50 bps ticking fee available.

The revolver and first-lien term loan include a 2% Libor floor.

All lenders are being offered the ability to recommit to the first-lien deal on the revised terms.

In addition, the amendment would permit the company to enter into the new $250 million second-lien term loan that is priced at Libor plus 800 bps with a 2% Libor floor and an original issue discount of 97. There is hard call protection of 103 in year one, 102 in year two and 101 in year three

Covenants under the exit facility would be adjusted to conform to the new plan, including the first-lien and senior secured leverage requirements, and the interest coverage ratio.

JPMorgan is the administrative agent on the revolver and first-lien term loan and Goldman Sachs is the administrative agent on the second-lien term loan.

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

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