RailRider Posted March 9, 2009 Share Posted March 9, 2009 CEDAR REAFFIRMS COMMITMENT TO REDUCING DEBT In addition, the Company continues to pursue the sale of excess land in the Toronto and Cleveland markets and continues to discuss the potential sale of California’s Great America, in Santa Clara, California, with the San Francisco 49ers. It has also completed a strategic review of its assets and has decided to explore the potential sale of Worlds of Fun, in Kansas City, Missouri and Valleyfair, in Shakopee, Minnesota. The Company said it would be premature to speculate on either the price or timing of any potential transaction. Shocked that only looking at one former Paramount park, but I can't say any of this is surprising 1 Quote Link to comment Share on other sites More sharing options...
Shaggy Posted March 9, 2009 Share Posted March 9, 2009 While I've not been to Valleyfair, I have been to World's of Fun as recently as this past summer. Quite frankly, I could not have been more under-whelmed by that park. It's base-infrastructure is pitiful. It's reminiscent of a park that's long since outlived it's glory days. I got an "Astroworldish" feeling when I was there. Don't get me wrong, it has possibilities... but only with a tremendous amount of overhaul. It has a fun hyper, a fun invert, and apparently getting a much needed woodie. But those three rides cannot make up for the rest. SFGAM has had it's future tossed around so many times over the years, but yet it still remains. With the looming 49ers stadium, that land is far more valuable as real-estate than it ever was as a park. The business head in me thinks they'd be crazy not to sell that and reduce debt. Shaggy Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted March 9, 2009 Share Posted March 9, 2009 More importantly, for all the unit holders, the annual cash distribution has been cut from $1.92 to $1 in order to help reduce debt levels. This means that the quarterly distribution rate is now 25 cents as opposed to 48 cents (when the rate was at $1.92). I too find it interesting that Great America is the only former Paramount Park to be mentioned as a potential candidate to be sold. I`m a little surprised at Valleyfair being a potential park to be sold, since it was one of the original Cedar Fair Parks. These are tough economic times for everyone, and Cedar Fair is no different. They have a lot of debt to deal with, and they are being proactive to reduce those debt levels. 1 Quote Link to comment Share on other sites More sharing options...
RailRider Posted March 9, 2009 Author Share Posted March 9, 2009 I am more surprised that the dividend remains, even if in a lesser form. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted March 9, 2009 Share Posted March 9, 2009 Well, they likely did not want to completely remove the cash distribution. Doing so would give unit holders no reason to retain their units in the company, which would have pushed the unit price even lower. As of this writing, the unit price is up 14 cents to $6.14, a far cry from the 52 week high of $25. 1 Quote Link to comment Share on other sites More sharing options...
RollerNut Posted March 9, 2009 Share Posted March 9, 2009 I`m a little surprised at Valleyfair being a potential park to be sold, since it was one of the original Cedar Fair Parks. That shocked me too, seeing how Cedar Fair came from the names Cedar Point and Valleyfair! I wasn't surprised that CGA is being looked at but I was surprised that MiA wasn't listed. I was also expecting Carowinds to be on the list of being looked at for possible sale. Quote Link to comment Share on other sites More sharing options...
Hank Posted March 9, 2009 Share Posted March 9, 2009 Gazing into the future.........Which attraction at a Cedar Fair park plays "It's A Small World After All"? Quote Link to comment Share on other sites More sharing options...
raptor Posted March 9, 2009 Share Posted March 9, 2009 Personally it doesn't hurt my feelings, if they sell parks from not around here. I'd like to see them be more of a local company and spend most of there money on parks in the midwest, and sell parks from not around here and reduce the debt. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted March 9, 2009 Share Posted March 9, 2009 But, being centralized in only the midwest means that they are more susceptible to weather patterns. While if they are geographically diverse, they are better able to weather potential negative impacts from mother nature. 1 Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted March 9, 2009 Share Posted March 9, 2009 I think this is a good move and it would be better if there was a buyer. 1 Quote Link to comment Share on other sites More sharing options...
nhimes90 Posted March 9, 2009 Share Posted March 9, 2009 So this is a somewhat stupid question. Do you think if CF does sell GA they will sell the rides off or move them to other parks. Seeing their financial whoas I could see it either way. 1 Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted March 9, 2009 Share Posted March 9, 2009 Well since Cedar Fair does not own the land simply the lease that Great America sits on, I would imagine all the assets of Great America would be sold, which includes the rides. However, if the 49ers were only interested in the land and not necessarily running an amusement park, they may be willing to buy the lease from CF. It all depends on the terms of the agreement of the potential sale. Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted March 9, 2009 Share Posted March 9, 2009 I think if anyone that wants the parks and has the money will wait and get the all the parks for less. All the 49ers have to do is wait and they will get their land. Selling parks and land tells you how the talks with the banks went. 1 Quote Link to comment Share on other sites More sharing options...
jzarley Posted March 9, 2009 Share Posted March 9, 2009 I`m a little surprised at Valleyfair being a potential park to be sold, since it was one of the original Cedar Fair Parks. That shocked me too, seeing how Cedar Fair came from the names Cedar Point and Valleyfair! I wasn't surprised that CGA is being looked at but I was surprised that MiA wasn't listed. I was also expecting Carowinds to be on the list of being looked at for possible sale. From what I've read, it actually sounds like MiA is a nice little money maker for CF. Obviously, it's no ways near one of the big money parks (CP, KI, Wonderland, or KBF), but it sounds like it's found its own nice little profitable niche. I think they actually were trying to recreate at GL what they had at MiA, but the situation was just too different there. They may have looked at MiA and thought that long term profitable operations there were more valuable than the short term fix of dumping the real estate. (Especially considering the dire nature of real estate and the overall economy of Michigan...) And, of course, it's also entirely possible that they're actually considering selling more parks than was released on this list... Sort of makes the whole "what park should CF buy next?" thread seem even funnier now, huh? (Not that I didn't find it pretty funny to begin with... ) 1 Quote Link to comment Share on other sites More sharing options...
flightoffear1996 Posted March 9, 2009 Share Posted March 9, 2009 What if they did sell of Great America do you think KI would be worthy of getting that B&M inverted coaster they have over there. KD, CP, Knotts, WL, all have full circuit inverted coasters. I think KI might be the only one without one which is why it would make a great fit for Kings Island back by x-base some where or jam it back were the go karts are. I am not sure of the layout so I don't know if it would even fit there. I can see it happening though if CF were to sell that park off. 1 Quote Link to comment Share on other sites More sharing options...
Beast1979 Posted March 9, 2009 Share Posted March 9, 2009 Canada's Wonderland, California's Great America, Worlds of Fun, and Valleyfair? 2 Stupid Questions: 1. Who the heck would buy them? 2. If the close (And not sold, Like GL) or in California's Great America's situation, would they redistribute some of the rides? Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted March 9, 2009 Share Posted March 9, 2009 Where the heck did you see that Canada`s Wonderland was listed among the parks that CF might sell?? To quote Cedar Fair`s press release: It has also completed a strategic review of its assets and has decided to explore the potential sale of Worlds of Fun, in Kansas City, Missouri and Valleyfair, in Shakopee, Minnesota. It merely states that they are exploring the potential sale of those two parks. Nothing is set in stone yet. But what is clear is that CF wants to raise capital to reduce their debt levels, even if that means selling off some of their lower performing properties. 1 Quote Link to comment Share on other sites More sharing options...
tigellinus Posted March 9, 2009 Share Posted March 9, 2009 ^^Yeah, Jackson, it was just the excess land by CW that CF wants to sell... Having been to CW last year, on the north of CW across from Major Mac (a Montgomery Rd-esque road) there is a huge plot/parcel of land that CF owns, and which is completely unattached to CW and that's what they want to sell. CW itself is actually sort of landlocked, but the park is very spread out, so there's still plenty of space. But CF would never consider selling CW!! I know CWMania peeps were saying that as of last fall the Toronto real estate market was still good (and there is a lot of development on-going around CW), but that was fall 08 and this is spring 09...and things are worse now economically everywhere. 1 Quote Link to comment Share on other sites More sharing options...
MarketingExpress Posted March 9, 2009 Share Posted March 9, 2009 http://news.cincinnati.com/article/20090309/BIZ/903100315 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 9, 2009 Share Posted March 9, 2009 ...SFGAM has had it's future tossed around so many times over the years, but yet it still remains. With the looming 49ers stadium, that land is far more valuable as real-estate than it ever was as a park. The business head in me thinks they'd be crazy not to sell that and reduce debt. Shaggy a. When someone as learned as Shaggy still thinks of California's Great America as Six Flags, it's no wonder there's confusion in the marketplace. b. As others have pointed out, Cedar Fair owns no land to sell at CGA. They have only a leasehold interest...and absent the 49rs buying it, I doubt it has much market as long as the specter of a stadium hangs over its head. c. As Captain Picard pointed out, today's actions make clear how the talks with the banks on refinancing went. Some of us have seen this coming for quite some time. The next shoe to fall is probably Six Flags, and that will be either a sale of the chain or at least the controlling interest or a bankruptcy. Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted March 9, 2009 Share Posted March 9, 2009 FUN closed at $6.17, up $.37 (6.17%). Realistically, Valleyfair and Worlds of Fun do not add much geographically to the portfolio. The LP is better off with the immediate cash on hand. I think this is a good move, and the investors seems to agree. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 9, 2009 Share Posted March 9, 2009 With Hard Rock Park's recent sale having gone the way it did, the Geauga Lake property having been on the market for a relatively long time and still not sold, the financing environment the way it is, the Busch parks on the block, and possible sales by Six Flags or of the entire company, I really wonder what market there is for parks as parks in this mature industry. I wonder even more at people like those who think they are going to build Bible Parks in Tennessee or amusement parks in Michigan (recently announced as kaput) or West Virginia. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 10, 2009 Share Posted March 10, 2009 A Kansas City perspective: ...Cedar Fair is selling the parks [Worlds of Fun and Oceans of Fun] because of the slow economy.... http://www.kctv5.com/money/18890408/detail.html Quote Link to comment Share on other sites More sharing options...
nhimes90 Posted March 10, 2009 Share Posted March 10, 2009 What if they did sell of Great America do you think KI would be worthy of getting that B&M inverted coaster they have over there. KD, CP, Knotts, WL, all have full circuit inverted coasters. I think KI might be the only one without one which is why it would make a great fit for Kings Island back by x-base some where or jam it back were the go karts are. I am not sure of the layout so I don't know if it would even fit there. I can see it happening though if CF were to sell that park off. I was wandering that exact same thing. Add on to X-Base for 2010, and don't give KI any new rides for like 3 years. It could always be a possibility, but they will do whatever can bring them more $$$$. It's all about the nickels! 1 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted March 10, 2009 Share Posted March 10, 2009 And the Minnesota perspective, including an interesting sidebar: http://www.twincities.com/ci_11874714 ....Attendance at the Mall of America's amusement park has been up 34 percent this year, thanks to its rebranding as Nickelodeon Universe last year, mall Vice President Maureen Bausch said. She believes Valleyfair should be able to draw some interested buyers, and views it as both an ally by boosting interest in travel to the Twin Cities as well as a rival. "They've been really good about adding new rides, and that's the signature of success for a good theme park," Bausch said. Still, the potential sale of Valleyfair comes during an economically turbulent period when financing deals can be difficult. Industry observers are cautiously optimistic about the year ahead. Historically, the amusement park business has been recession-proof, but that's harder to say with certainty during these times, according to David Mandt, a spokesman for the International Association of Amusement Parks and Attractions trade group based in Virginia. ... By the way, what was Mall of America's amusement park's prior theming? Snoopy. And who managed it then? Cedar Fair. Quote Link to comment Share on other sites More sharing options...
RailRider Posted March 10, 2009 Author Share Posted March 10, 2009 With the news from Cedar Fair and the happenings of the market today, FUN is up more than 16% right now. Hope it rides that way the rest of the day. 1 Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted March 10, 2009 Share Posted March 10, 2009 I think if you are holding FUN and it's up it's a gift. The problems that got it to where it is are still there. 1 Quote Link to comment Share on other sites More sharing options...
CedarPointer Posted March 10, 2009 Share Posted March 10, 2009 I'm a bit surprised that a park getting a new coaster is also up for sale. WoF is a really nice park, with one, soon to be two, good woodies. Better make it out there this summer so I can still use my platinum pass... 1 Quote Link to comment Share on other sites More sharing options...
tigellinus Posted March 10, 2009 Share Posted March 10, 2009 ^^Again, as the pundits have opined, there are a multitude of reasons that WOF is being mentioned...at the bottom of that list would be due to it being a money loser or park that CF doesn't want. 1 Quote Link to comment Share on other sites More sharing options...
RailRider Posted March 10, 2009 Author Share Posted March 10, 2009 Investors seem to like the direction of Cedar Fair, with the dividend cut and trying to sell a few parks. FUN closed up 23% today. Sometimes it is not what you do, but what you say that matters. 1 Quote Link to comment Share on other sites More sharing options...
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