Beast1979 Posted December 16, 2009 Share Posted December 16, 2009 http://www.sanduskyregister.com/articles/2009/12/16/breaking_news/doc4b295d3e5707c911502985.txt Holy Crap! Link to comment Share on other sites More sharing options...
tycoonrebel7188 Posted December 16, 2009 Share Posted December 16, 2009 Darn it Beast you beat me to it! This should be Interesting to see how this plays out. What I wonder about is whether this new company will just me the majority share holder and completely take over managment or if they will let things be. Link to comment Share on other sites More sharing options...
The Interpreter Posted December 16, 2009 Share Posted December 16, 2009 I have been saying for some time that the current company probably would not own the park in the near future. There is little surprise here...debt default was otherwise soon coming. That all being said, no sale is complete until it is final. And being owned by a private equity firm can be a very good thing or a very bad thing... Link to comment Share on other sites More sharing options...
Coaster Kid Posted December 16, 2009 Share Posted December 16, 2009 They better not take over managment they will ruin Cedar Point and Kings Island. RUIN Link to comment Share on other sites More sharing options...
Creed Bratton Posted December 16, 2009 Share Posted December 16, 2009 If this goes through, which I pray it doesn't, too many changes in owners in too little of a time, what do you think will come of this? Does Apollo Managment LP own any parks at all? Or would this be a new venture for them? Link to comment Share on other sites More sharing options...
LongLiveTheSmurfRide Posted December 16, 2009 Share Posted December 16, 2009 From their Wikipedia page: "Among the most notable companies currently owned by Apollo are AMC Entertainment, Claire's, Harrah's Entertainment, Norwegian Cruise Line and Realogy (Coldwell Banker and Century 21 Real Estate)." Link to comment Share on other sites More sharing options...
Diamondback96 Posted December 16, 2009 Share Posted December 16, 2009 I hope they will just be handling the debt. They shouldn't touch the parks unless they need to cut spending. If they take over management of individual parks, then we may as well start crying/rioting because it will likely be as bad as CBS or worse. Link to comment Share on other sites More sharing options...
CincyMan98 Posted December 16, 2009 Share Posted December 16, 2009 What if the new company ruins everything at Kings Island? Link to comment Share on other sites More sharing options...
The Interpreter Posted December 16, 2009 Share Posted December 16, 2009 Private investment companies exist to buy things cheap and sell them for more. Why on earth would they "ruin everything at Kings Island?" Link to comment Share on other sites More sharing options...
HTCO Posted December 16, 2009 Share Posted December 16, 2009 Oh. Fantastic. Link to comment Share on other sites More sharing options...
LongLiveTheSmurfRide Posted December 16, 2009 Share Posted December 16, 2009 Just from what I've been reading, it looks like this company is all about investing in opportunities, but I don't see where they actually take over management duties. Link to comment Share on other sites More sharing options...
The Interpreter Posted December 16, 2009 Share Posted December 16, 2009 http://online.wsj.com/article/SB10001424052748704541004574600443362702668.html Link to comment Share on other sites More sharing options...
Diamondback FOF Posted December 16, 2009 Share Posted December 16, 2009 I have been saying for some time that the current company probably would not own the park in the near future. There is little surprise here...debt default was otherwise soon coming. That all being said, no sale is complete until it is final. And being owned by a private equity firm can be a very good thing or a very bad thing... So, what happens to CF's current debt? The first article link posted said: The Wall Street Journal is reporting that Apollo Management LP is expected to acquire Cedar Fair for about $700 million. The deal would also include the assumption of $1.6 billion of debt, said people familiar with the matter... So, does that mean CF will be out of debt, plus they will recieve about $700 million? Thus, in total, it is a buy of about $2.3 million? That seems like an awful lot of money. Also, does this include all CF parks, or will CF keep control of some like CP? *Waiting on a 'yes' answer. Edit: also from the first article: ...According to Google Finance, the amusement park company's stock rose 29.63 percent in after-hours trading to $9.10 per limited partner unit. Apollo Managment LP is a division of Apollo Investment Corp., which announced the closing of its public offering of common stock on Dec. 15 Link to comment Share on other sites More sharing options...
Diamondback96 Posted December 16, 2009 Share Posted December 16, 2009 If you search "Cedar Fair sale", you can find the full version of the article Terpy is talking about. I'm still surprised. Link to comment Share on other sites More sharing options...
thekidd33 Posted December 16, 2009 Share Posted December 16, 2009 Wow I didn't think we would be reading about this so soon. This could turn out ot be a great thing for KI though. Obviously I don't know Apollo's plans for the parks but if they intend to sell them off individually (a possibility I would think) it makes sense that they would want to make them as attractive to potential buyers as possible. This could mean new attractions/events for KI. Not to mention being owned by a company that is much better equipped to handle the sort of debt load CF currently holds can't hurt either. Hopefully this works out well for everyone. Link to comment Share on other sites More sharing options...
The Interpreter Posted December 16, 2009 Share Posted December 16, 2009 If Cedar Fair is purchased, under the terms being discussed in the articles so far, the new company, Apollo, would assume the debt. They would either pay it, refinance it and/or renegotiate the covenants that were about to be breached. Yes, the total transaction price appears to be about $2.3 billion. One would assume that is for all Cedar Fair's assets, but we must wait and see. There also remains the possibility a higher offer could happen, or that the proposed sale may not happen. Link to comment Share on other sites More sharing options...
Diamondback96 Posted December 16, 2009 Share Posted December 16, 2009 I have been saying for some time that the current company probably would not own the park in the near future. There is little surprise here...debt default was otherwise soon coming. That all being said, no sale is complete until it is final. And being owned by a private equity firm can be a very good thing or a very bad thing... So, what happens to CF's current debt? The first article link posted said: The Wall Street Journal is reporting that Apollo Management LP is expected to acquire Cedar Fair for about $700 million. The deal would also include the assumption of $1.6 billion of debt, said people familiar with the matter... So, does that mean CF will be out of debt, plus they will recieve about $700 million? Thus, in total, it is a buy of about $2.3 million? That seems like an awful lot of money. Also, does this include all CF parks, or will CF keep control of some like CP? *Waiting on a 'yes' answer. Edit: also from the first article: ...According to Google Finance, the amusement park company's stock rose 29.63 percent in after-hours trading to $9.10 per limited partner unit. Apollo Managment LP is a division of Apollo Investment Corp., which announced the closing of its public offering of common stock on Dec. 15 No, it's just the $700 million. The $1.6 billion is the debt that will be carried over. CF will still be in debt Apollo Investment Corp. will then be in debt. (Thanks Terpy!) I just couldn't wait for Terpy to say yes! Link to comment Share on other sites More sharing options...
The Interpreter Posted December 16, 2009 Share Posted December 16, 2009 You should have waited. IF this happens, Cedar Fair will NOT be in debt. It will be sold. The new company would have the debt. Also, as usual, the Sandusky Register is incorrect....FUN stock did NOT rise nearly 30 percent today. Someone needs to learn to do math there. Link to comment Share on other sites More sharing options...
Diamondback96 Posted December 16, 2009 Share Posted December 16, 2009 You should have waited. IF this happens, Cedar Fair will NOT be in debt. It will be sold. The new company would have the debt. Also, as usual, the Sandusky Register is incorrect....FUN stock did NOT rise nearly 30 percent today. Someone needs to learn to do math there. Edited. Thanks! So what you're saying is that CF will no longer exist? Link to comment Share on other sites More sharing options...
thekidd33 Posted December 16, 2009 Share Posted December 16, 2009 You should have waited. IF this happens, Cedar Fair will NOT be in debt. It will be sold. The new company would have the debt. Also, as usual, the Sandusky Register is incorrect....FUN stock did NOT rise nearly 30 percent today. Someone needs to learn to do math there. ....Certainly not trying to prove the great Terpy wrong... It was at $9.10 this morning and reached $11.70 in after hours trading (according to the Wall Street Journal) thats close to 30 percent. The Sandusky Register misquoted the price I believe...it STARTED at $9.10 instead of ending there. Haha or perhaps my facts are completely wrong... Link to comment Share on other sites More sharing options...
The Interpreter Posted December 16, 2009 Share Posted December 16, 2009 No, you are complety correct. In Math they did fine, provided they had written it correctly... It still wasn't right, but my correction was misleading, too! Writing on the fly does that to us all at times. Link to comment Share on other sites More sharing options...
The Interpreter Posted December 16, 2009 Share Posted December 16, 2009 THE recognized source for information on private equity deals is now repeating the WSJ story: http://www.pehub.com/58484/report-apollo-to-buy-cedar-fair/ Link to comment Share on other sites More sharing options...
Beast1979 Posted December 16, 2009 Author Share Posted December 16, 2009 I have two questions: 1. Will I still be able to buy passes to Kings Island and Cedar Point? 2. When I go to said parks, will they be any different at all? I guess it comes down to, will current management remain, or will they manage things for us? Link to comment Share on other sites More sharing options...
Dvo Posted December 16, 2009 Share Posted December 16, 2009 Big news. Can't say I'm too surprised. The initial shock was there, but I can certainly understand this move. Let's just hope that 10 or 15 years from now, we don't look back at this as the beginning of the end. Link to comment Share on other sites More sharing options...
HTCO Posted December 16, 2009 Share Posted December 16, 2009 My question is, will we see more high quality thrill rides or is this company going to become another paramount... Link to comment Share on other sites More sharing options...
Scooby_Doo Posted December 16, 2009 Share Posted December 16, 2009 I have mixed feelings after seeing my beloved Scooby-Doo get kicked to the curb I'm still kinda bitter. Link to comment Share on other sites More sharing options...
thekidd33 Posted December 16, 2009 Share Posted December 16, 2009 I have two questions: 1. Will I still be able to buy passes to Kings Island and Cedar Point? 2. When I go to said parks, will they be any different at all? I guess it comes down to, will current management remain, or will they manage things for us? I would think that at the minimum passes that have already been bought/renewed will be honored for the coming year. As for the second question...who knows? I guess we will all have to wait and see. Link to comment Share on other sites More sharing options...
Dvo Posted December 16, 2009 Share Posted December 16, 2009 ^^^Say what you want about Paramount, they gave us Invertigo, Drop Tower, Flight Deck, and SoB. Three of those are great rides if you ask me. Link to comment Share on other sites More sharing options...
goofywdw Posted December 16, 2009 Share Posted December 16, 2009 Very very interesting. I'm really confused about this though. Not about the debt but what the future of the parks is. Link to comment Share on other sites More sharing options...
CoastersRZ Posted December 17, 2009 Share Posted December 17, 2009 Granted, this deal has not been finalized yet. Nor has Cedar Fair itself commented on this speculation (or will they likely do so until after it is finalized and announced if it is indeed ever finalized). It would not be surprising if Cedar Fair were bought based on their debt and the fact that they were likely going to be cutting their cash distribution to pay down their debts. Since Apollo is a private equity firm, it will be interesting to see exactly what their investment will be in Cedar Fair. It will also be interesting to see what happens to Cedar Fair`s units upon completion of the sale. Will owners in those units get a set amount of money in exchange for their shares? I would have to assume that something along those lines will happen. One thing that may happen if this sale goes through, is that the quarterly conference calls that Cedar Fair has had may become a thing of the past. So it may be harder to judge how well the parks are doing in terms of attendance, and harder to judge what level of capital investment the parks are doing every season. I`d expect day to day operations at the parks to remain relatively unchanged. Yes, some of the senior management at the corporate level may experience a turnover with this acquisition, but remember that Apollo would be investing in this company because they expect to see a return on their investment. Will there be changes at the parks? Sure, with any new owner of a park you can expect to see some changes. Like when Cedar Fair purchased Kings Island, you likely won`t see any drastic changes immediately. Needless to say, it will be interesting to see what happens over the next few days as more details emerge. Of course, this whole thing could end up not even happening. Link to comment Share on other sites More sharing options...
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