Cedar Fair $2.095 billion credit facility to launch Thursday

By Sara Rosenberg

New York, June 9 - Cedar Fair LP is scheduled to hold a bank meeting on Thursday to launch its proposed $2.095 billion credit facility, according to a market source.

Bear Stearns is the lead bank on the deal.

The facility consists of a $350 million revolver and a $1.745 billion term loan B, the source said, adding that price talk and ratings are still to be determined.

Proceeds from the credit facility will be used to help fund the $1.24 billion cash acquisition of Paramount Parks from CBS Corp. and to refinance Cedar Fair's existing debt.

Pro forma for the acquisition, leverage will be around 5.6 times.

The five Paramount Parks consist of Canada's Wonderland near Toronto, King's Island near Cincinnati, Ohio, King's Dominion near Richmond, Va., Carowinds near Charlotte, N.C., and Great America located in Santa Clara, Calif.

In 2005, the Paramount Parks generated revenues of about $423 million while entertaining 12.2 million guests. Cedar Fair reported $569 million in revenues and 12.7 million guest visits. On a combined basis, the two companies generated almost $1 billion in revenues and entertained about 25 million guests in 2005.

The transaction is subject customary closing conditions, including regulatory approval, and is expected to close during the third quarter.

Cedar Fair is a Sandusky, Ohio owner and operator of amusement parks and water parks.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.