Cedar Fair sets Friday call to launch $1.25 billion credit facility

By Sara Rosenberg

New York, Jan. 14 - Cedar Fair LP has scheduled a conference call for Friday morning to launch its proposed $1.25 billion senior secured credit facility (Ba3) to existing lenders only, according to a market source.

Bank of America, JPMorgan, Barclays Capital, UBS and KeyBanc Capital Market are the lead banks on the deal.

The credit facility consists of a $250 million revolver and a $1 billion term loan.

Proceeds will be used to help fund the buyout of the company by Apollo Global Management in a transaction valued at about $2.4 billion, including the refinancing of outstanding debt.

Under the acquisition agreement, Cedar Fair unitholders will receive $11.50 in cash for each limited partnership unit that they hold.

Other financing for the buyout is expected to come from the sale of $700 million of high-yield bonds and up to $765 million in equity.

The bonds are backed by a commitment for a $700 million senior unsecured bridge loan.

Closing on the buyout is expected by the beginning of the second quarter, subject to approval of holders of two-thirds of Cedar Fair's outstanding units, the receipt of regulatory approvals and other conditions. The transaction does not include a financing condition.

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

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