Cedar Fair Entertainment launches $1.35 billion credit facility

By Sara Rosenberg

New York, May 21 - Cedar Fair Entertainment Co. held a bank meeting on Friday to launch its proposed $1.35 billion senior secured credit facility (Ba2/BB-), according to a market source.

JPMorgan and UBS are the lead banks on the deal.

The facility consists of a $1.05 billion term loan and a $300 million five-year revolver.

The term loan is talked at Libor plus 375 basis points with a 1.5% Libor floor and an original issue discount of 99 to 991/2, and the revolver is talked at Libor plus 350 bps with no Libor floor, the source said.

The credit agreement allows for the addition of up to $350 million in incremental term loans.

Proceeds from the credit facility, along with $500 million of senior unsecured notes, will be used to refinance the company's existing credit facility.

As of March 28, Cedar Fair had $1.5 billion of term loan debt with a final maturity in 2012 and $216 million in borrowings under its revolving credit facility that matures in 2011.

Cedar Fair is a Sandusky, Ohio-based regional amusement-resort operator.

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