RailRider Posted August 6, 2009 Share Posted August 6, 2009 SANDUSKY, Ohio, Aug 06, 2009 /PRNewswire-FirstCall via COMTEX/ -- Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced that it has received consent from its lenders to amend its credit agreement. It also announced that lenders holding $900 million of its term debt will extend the maturity date of their commitments by two years. The extended term debt will mature in 2014 and bears a rate of LIBOR plus 4.0%. "Our lender group has been supportive of our business strategy, and we are pleased that we've received their consent to amend and extend our credit agreement," said Dick Kinzel, Cedar Fair's chairman, president and chief executive officer. "The overall success of this transaction, including the ability to upsize the amount of the extended credit to $900 million, shows our lenders' commitment and confidence in the long-term success of our business." The amendment will, among other things: -- Allow for incurrence of secured debt (in the form of loans or bonds), with proceeds to repay existing term loans; -- Allow for up to $150 million of sales/leasebacks, with 100% of net proceeds used to repay existing term loans ahead of extended term loans; -- Allow for asset sales in aggregate of greater than $250 million in Fair Market Value, with 100% of net proceeds used to repay existing term loans ahead of extended term loans, and will include a revolving credit facility commitment reduction equal to 5% of the net proceeds upon such sale; and -- Allow for additional offerings of credit extensions. Other terms of the amendment include a reduction in the Company's existing $345 million revolving credit facilities, including a $30 million reduction in its U.S. facility and a $5 million reduction in its Canadian facility. "Improving our capital structure continues to be a priority for us," added Kinzel. "At the end of last year we had $1.7 billion in long-term debt which was set to mature within the next three years. Since then, we have reduced our distribution rate, sold surplus land in Canada, and extended a significant portion of our term debt maturities. Taking these items into consideration, along with our regular annual amortization payments, we have now proactively reduced our refinancing risk in 2012. While these events have improved our capital structure, we will continue to monitor the markets for additional opportunities to reduce our leverage and strengthen our financial position over the long term." JPMorgan acted as sole lead arranger and sole bookrunner in connection with the amendment and extension. The amendment and extension of the credit agreement will be subject to the satisfaction of customary closing conditions, and the Company expects it will be finalized shortly. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 6, 2009 Share Posted August 6, 2009 That is very good news, and, provided the amended facility affects the covenants that otherwise would have applied, avoids what might have been the triggering of a debt covenant later this calendar year. Quote Link to comment Share on other sites More sharing options...
TH13TEEN Posted August 6, 2009 Share Posted August 6, 2009 ^ Good news? Can you help me understand Terpy? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 6, 2009 Share Posted August 6, 2009 Sure. Cedar Fair borrowed a whole lot of money when they bought Paramount Parks. To get that, they promised they'd do certain things or, if they didn't, they'd pay it back early. Also, much of it was due in 2012 in any event. Now, they got that extended for $900 million of the debt, got permission to sell a bunch of stuff provided they pay the monies received towards the loan, and got out of some of their promises to do certain other things by paying somewhat more interest than they otherwise would have or by making certain other promises, not all of which may be public. They also got the right to go out and borrow more money to pay off some of the money they now owe. And they have "proactively reduced [their] refinancing risk in 2012." This means it is less likely they will go broke in 2012 due to not being able to refinance. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 6, 2009 Share Posted August 6, 2009 That all being said, the market is not impressed. The reaction: FUN: 10.55 Down 0.35 (down 3.21%) 3:35pm ET Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted August 6, 2009 Share Posted August 6, 2009 Looks like a little move to the upside tomorrow if the market moves up. Quote Link to comment Share on other sites More sharing options...
TH13TEEN Posted August 6, 2009 Share Posted August 6, 2009 Thanks Terpy! Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 6, 2009 Share Posted August 6, 2009 Looks like a little move to the upside tomorrow if the market moves up. I am not sure I'd say that, given the loan news came out before the market even opened today. But, predicting the market on a day to day basis is next to impossible. Today's close: 4:03pm ET: 10.63 0.27 ( down 2.48%) Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted August 6, 2009 Share Posted August 6, 2009 We will have to wait and see I guess. It doesn't seem to trade on news much anyway. If it did it would be closer to 0. Quote Link to comment Share on other sites More sharing options...
Captain Picard Posted August 7, 2009 Share Posted August 7, 2009 Looks like a little move to the upside tomorrow if the market moves up. I am not sure I'd say that, given the loan news came out before the market even opened today. But, predicting the market on a day to day basis is next to impossible. Today's close: 4:03pm ET: 10.63 0.27 ( down 2.48%) 9:30AM ET: 10.92 0.29 (2.73%) Cedar Fair LP Captain takes profits and takes the rest of the day off. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 7, 2009 Share Posted August 7, 2009 SANDUSKY — Cedar Fair LP lenders agreed to extend $900 million of its term loan by two years to 2014 in exchange for a higher interest rate, a company statement yesterday said. The amusement-park operator had asked lenders to extend at least $750 million of its $1.67 billion term loan. The amendment also allows Cedar Fair to ask for additional credit extensions in the future.... http://toledoblade.com/apps/pbcs.dll/artic...3/-1/BUSINESS02 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 8, 2009 Share Posted August 8, 2009 This is not good: http://www.iii.co.uk/news/?type=afxnews&am...;action=article Aug 7 (Reuters) - Cedar Fair LP: # MOODY'S RATES Cedar Fair'S EXTENDED TERM LOANS; OUTLOOK REMAINS NEGATIVE (emphasis in the original) For more, one must be a subscriber to Moody's. Note: In this context, a negative outlook refers to Moody's assessment that the prospect of the creditors actually being paid in full and on time remains negative, not that the prospect of the parks making a profit or operating in a normal fashion remains negative...only the prospect of the debt being repaid is being rated... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted August 14, 2009 Share Posted August 14, 2009 And now it is done: http://news.prnewswire.com/ViewContent.asp...7875&EDATE= See also: ...Cedar Fair is the third-largest amusement park chain in North America and has been working to improve its financial situation — including exploring the sale of some of its parks and other alternatives to trim its debt to cope with weak sales. Like many recreation companies, Cedar Fair has seen its business slump during the recession as consumers cut back on travel and discretionary spending.... http://www.cnbc.com/id/32423042 Quote Link to comment Share on other sites More sharing options...
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