Cedar Fair to price $875 million five-year secured notes on Monday; initial talk 6½% area

By Paul A. Harris

Portland, Ore., April 20 – Cedar Fair Entertainment Co. plans to price an $875 million offering of five-year senior secured notes in a Monday drive-by, according to market sources.

Initial price talk has the deal coming to yield in the 6½% area, according to a trader, who expects that talk to tighten by perhaps as much as 50 basis points.

The deal is believed to be playing to a substantial amount of reverse inquiry, the trader added.

J.P. Morgan Securities LLC is leading the sale.

The Rule 144A and Regulation S notes come with two years of call protection.

The co-issuers will be wholly owned subsidiaries Magnum Management Corp., Canada's Wonderland Co. and Millennium Operations LLC.

The Sandusky, Ohio-based theme park operator plans to use the proceeds to pay down its term loan, with the remainder to be used for general corporate and working capital purposes.

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