Cedar Fair lifts term loan to $1.25 billion, sets Friday lender call

By Sara Rosenberg

New York, July 15 - Cedar Fair LP increased the size of its proposed six-year term loan to $1.15 billion from $1.05 billion and has scheduled a conference call for 11 a.m. ET on Friday to discuss the transaction with lenders, at which time price talk is likely to emerge, according to a market source.

The company's five-year revolver is still sized at $300 million.

JPMorgan, KeyBank, UBS and Fifth Third Bank are the lead banks on the now $1.45 billion senior secured credit facility (Ba2/BB-), with JPMorgan the left lead.

The deal was initially presented to lenders on May 21, but has just been sitting in the market because of a delay with the company's bond offering.

The senior unsecured notes offering resurfaced on Thursday with a size of $400 million, down from the originally proposed $500 million, which is why the term loan was upsized.

On Thursday morning, the bonds were expected at $300 million and the term loan at $1.25 billion, but the sizes changed in the afternoon.

When first launched, the term loan was being 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 was being talked at Libor plus 350 bps with no Libor floor.

Proceeds from Cedar Fair's credit facility and notes will be used to refinance an existing credit facility.

As of March 28, the company 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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