Cedar Fair expected to pull credit facility after nixing Apollo buyout

By Angela McDaniels

Tacoma, Wash., April 6 - Cedar Fair LP is expected to pull its $1.45 billion credit facility, according to market sources.

The company planned to use the proceeds of the facility to help fund its buyout by Apollo Global Management. However, Cedar Fair and Apollo announced on Tuesday that they agreed to terminate the merger agreement.

"The board has heard from Cedar Fair unitholders, and it is apparent that the merger transaction does not have the required level of investor support," Cedar Fair chairman, president and chief executive officer Dick Kinzel said in a news release.

"As we execute on our business objectives, we will also be evaluating next steps to address our capital structure."

The credit facility (Ba3/BB-) includes a $1.2 billion six-year term loan B and a $250 million five-year revolving credit facility. It broke for trading on Feb. 10.

Pricing on the facility is Libor plus 375 basis points with a 1.5% Libor floor.

The term loan was offered at 991/2.

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

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

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