The Interpreter Posted December 19, 2009 Share Posted December 19, 2009 I'd be careful what I wished for. An amusement park left alone for too long is a closed park. Parks need constant capital expenditures and attention. And great profits can be taken out of a park for quite some time while it is left alone, until the point of no-return, when closure then becomes virtually inevitable. Terpy, just sayin' Quote Link to comment Share on other sites More sharing options...
BoddaH1994 Posted December 19, 2009 Share Posted December 19, 2009 I want to note, however, that if it weren't for Apollo, Claire's would likely be liquidated and its 17,600 employees would be seeking employment elsewhere. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 19, 2009 Share Posted December 19, 2009 Yet another analogy? On the other hand, how'd it work out at Linens N Things? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 19, 2009 Share Posted December 19, 2009 The Motley Fool: FUN, THE Dumbest Stock Move of the Week: ...1. Snow falling on CedarIt's a bittersweet buyout for regional amusement-park operator Cedar Fair (NYSE: FUN). Yes, Apollo Global Management's offer of $11.50 a unit is a 27% premium, but it's also half of where Cedar Fair was trading just two summers ago. In other words, Cedar Fair cashed out too late. You also have an industry that's clearly a proxy for the greater economy. If folks are out of work or short on discretionary income, the entrance turnstiles are going to click slowly. Cedar Fair didn't help its own case by slashing its once-hefty payout and buying the unwieldy Paramount Parks chain. However, if the economy does turn the corner next year, as many economists expect, Cedar Fair's roller-coaster havens should be magnets for thrill-seekers and young families with a little extra money to spend on escapism. In other words, Cedar Fair also cashed out too early. ... http://www.fool.com/...tock-moves.aspx 1 Quote Link to comment Share on other sites More sharing options...
Mr. Coastermania Posted December 19, 2009 Share Posted December 19, 2009 Every thing will still run normal.Im sure they will try to make things better to draw more guests into the park. Besides what can anyone do?stop going because of this?Lets just wait and see.Im all for change if it brings something better. Quote Link to comment Share on other sites More sharing options...
CrashOverRided Posted December 19, 2009 Share Posted December 19, 2009 Well, I think we can all agree or at least most of us, we knew that Cedar Fair was getting to a point where they were struggling with the debt and the current economy didn’t help things. so to see this kind of strategy used to "how do I say" "save the company" is truly not surprising. It happens with companies all the time. It’s hard to hear because it evolves our beloved park. There are lots of questions that people want answered. I am sure there will be allot of sleepless night for the Uppers of Cedar Fair. We know there will be some change we just need to brace for them. Quote Link to comment Share on other sites More sharing options...
Carowinds2005 Posted December 19, 2009 Share Posted December 19, 2009 Negotiators Kept Lid On Acquisition Talks: http://toledoblade.com/apps/pbcs.dll/article?AID=/20091219/BUSINESS03/912190355/-1/BUSINESS aka Seahorse The article states that the 92 page merger document was made online Thursday. Do you know where it is located? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 19, 2009 Share Posted December 19, 2009 I thought you all would never ask! http://www.cedarfair.com/_upload/apollo%20-%20definitive%20agreement.pdf Quote Link to comment Share on other sites More sharing options...
Diamondback96 Posted December 19, 2009 Share Posted December 19, 2009 Is the bottom left corner screwed up? Yes. Is the park screwed up? Hardly. But the opportunity is there, now more then ever. I hope to god they either improve my park or leave it the heck alone. So you want them to remove SoB, and the park will be perfect? Edit: SoB will have to be removed now, because Apollo will have to look at its history to make a decision. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 19, 2009 Share Posted December 19, 2009 ...and Cedar Fair LP and its subsidiaries would not have? Please... Quote Link to comment Share on other sites More sharing options...
CrashOverRided Posted December 20, 2009 Share Posted December 20, 2009 I thought you all would never ask! http://www.cedarfair...20agreement.pdf Interpreter, thanks. how ya been. i need to catch up on things here. been away for a bit! this new news kinda makes that SOB question kinda small news now. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 20, 2009 Share Posted December 20, 2009 I've been doing the usual, interpreting...dropping hints where I can and not where I can't. Someone heard me muttering something about sonny once, I think. Quote Link to comment Share on other sites More sharing options...
CedarPointer Posted December 20, 2009 Share Posted December 20, 2009 Edit: SoB will have to be removed now, because Apollo will have to look at its history to make a decision. JtWkNxn3duA Edit: Youtube tags are broken? Quote Link to comment Share on other sites More sharing options...
Diamondback96 Posted December 20, 2009 Share Posted December 20, 2009 ...and Cedar Fair LP and its subsidiaries would not have? Please... They would have, but they could have still decided to keep it open. Now with Apollo buying CF, Apollo will be cutting spending everywhere. Quote Link to comment Share on other sites More sharing options...
CrashOverRided Posted December 20, 2009 Share Posted December 20, 2009 I've been doing the usual, interpreting...dropping hints where I can and not where I can't. Someone heard me muttering something about sonny once, I think. lol........I think there have been pleanty of hints of this news for some time. Its like a domino effect. And I think the ball is starting to head down that steep hill for CF and i dont thing the trims are working to slow this ball down. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 20, 2009 Share Posted December 20, 2009 ...and Cedar Fair LP and its subsidiaries would not have? Please... They would have, but they could have still decided to keep it open. Now with Apollo buying CF, Apollo will be cutting spending everywhere. And you think removing Son of Beast will not have a HUGE cost? Who owns Kings Island will have very little, if any, effect on the decision to remove/repair/let stand but not operate Son of Beast. Quote Link to comment Share on other sites More sharing options...
CrashOverRided Posted December 20, 2009 Share Posted December 20, 2009 I've been doing the usual, interpreting...dropping hints where I can and not where I can't. Someone heard me muttering something about sonny once, I think. lol........I think there have been pleanty of hints of this news for some time. Its like a domino effect. And I think the ball is starting to head down that steep hill for CF and i dont think the trims are working to slow this ball down. and I am having a hell of a time getting used to the new skin arrrrrrrrggggggg Quote Link to comment Share on other sites More sharing options...
CrashOverRided Posted December 20, 2009 Share Posted December 20, 2009 ...and Cedar Fair LP and its subsidiaries would not have? Please... They would have, but they could have still decided to keep it open. Now with Apollo buying CF, Apollo will be cutting spending everywhere. And you think removing Son of Beast will not have a HUGE cost? Who owns Kings Island will have very little, if any, effect on the decision to remove/repair/let stand but not operate Son of Beast. people, if SOB is closed it will stand for a long time before it is tore out. Even more now with the new news. First task will be to Clean up Debt. not cause more. Quote Link to comment Share on other sites More sharing options...
CedarPointer Posted December 20, 2009 Share Posted December 20, 2009 Or remove one section at a time for a few years... (of course, that may not be possible, I don't know!) Quote Link to comment Share on other sites More sharing options...
Diamondback96 Posted December 20, 2009 Share Posted December 20, 2009 ...and Cedar Fair LP and its subsidiaries would not have? Please... They would have, but they could have still decided to keep it open. Now with Apollo buying CF, Apollo will be cutting spending everywhere. And you think removing Son of Beast will not have a HUGE cost? Who owns Kings Island will have very little, if any, effect on the decision to remove/repair/let stand but not operate Son of Beast. Well, if not removed, it's going to be SBNO. Repairing the ride will just cost more than SBNO or removing it. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 20, 2009 Share Posted December 20, 2009 I'm not trying to be mean, but how do you know this? Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted December 20, 2009 Share Posted December 20, 2009 ...and Cedar Fair LP and its subsidiaries would not have? Please... They would have, but they could have still decided to keep it open. Now with Apollo buying CF, Apollo will be cutting spending everywhere. ...unless, of course, something has already been started in repairs for SOB. If it has started or some sort of repairs have been been decided on and paid for, then they will most likely be completed. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 20, 2009 Share Posted December 20, 2009 On the other hand, at last hearing, the new ride at Cedar Point had not yet been paid for! Source: The Toledo Blade... http://www.ohio.com/entertainment/78944097.html First paragraph: Cedar Point's parent company saw attendance and in-park spending drop in 2009, and it has a new $10.5 million ride that debuts next spring that has yet to be paid for in full.... Note that when this FIRST appeared in The Blade, I don't remember the "in full" language appearing...but still... Quote Link to comment Share on other sites More sharing options...
Diamondback FOF Posted December 20, 2009 Share Posted December 20, 2009 Seriously? They delayed the ride for a year, AND they still haven't been able to pay for it? Wow... Quote Link to comment Share on other sites More sharing options...
CrashOverRided Posted December 20, 2009 Share Posted December 20, 2009 On the other hand, at last hearing, the new ride at Cedar Point had not yet been paid for! Source: The Toledo Blade... thats whats causes the demise of the company. Its like getting a credit card with a 5000.00 limit and buying somthing for 4000.00 knowing your cant aford it...and paying the min payment. thats whats happend here. Quote Link to comment Share on other sites More sharing options...
TopThrill Posted December 20, 2009 Share Posted December 20, 2009 Is this going to mean higher prices in the parks? And hows the the final price of Cedar Fair lower than the five parks that Paramount parks went for? Quote Link to comment Share on other sites More sharing options...
RingMaster Posted December 20, 2009 Share Posted December 20, 2009 Cedar Point raised their ticket prices up one dollar a few days prior to the Apollo acquisition: http://www.ohio.com/entertainment/78944097.html So it's up in the air as to whether or not the other parks followed suit prior to this and have yet to announce it, or are planning on raising prices at a later date. Quote Link to comment Share on other sites More sharing options...
Cory Butcher Posted December 20, 2009 Share Posted December 20, 2009 I thought you all would never ask! http://www.cedarfair...20agreement.pdf From the document provided by The Interpreter: The Merger Agreement contains certain termination rights for both the Company and Parent. Upon termination of the MergerAgreement under specified circumstances, including if the Board of Directors determines in good faith that it has received a superior proposal, and otherwise complies with certain terms of the Merger Agreement, the Company may be required to pay Parent a fee of $19,556,700, unless such termination is to accept a superior proposal prior to the Solicitation End Period Date, in which case the Company must pay Parent a fee of $11,408,100. In addition, under specified circumstances, the Company must pay to Parent up to $6,500,000 of its out-of-pocket expenses relating to the Merger Agreement. In certain other limited circumstances, the Merger Agreement provides for Parent to pay to the Company a fee of $50,000,000 upon termination of the Merger Agreement. Oh, it would really be terrible to terminate the merger agreement and have to pay that amount! Is this going to mean higher prices in the parks? And hows the the final price of Cedar Fair lower than the five parks that Paramount parks went for? The total acquisition, I read somewhere, is actually costing 2.4 Billion dollars. Apollo is purchasing Cedar Fair for $635 Million, but Apollo also essentially must "purchase" the debt that Cedar Fair is carrying which is well upwards of 1 Billion! From Kansas City Business Journal: "The deal also refinances Cedar Fair’s debt, with a $1.95 billion financing commitment from a banking group that includes affiliates of J.P. Morgan and others." So you see, the acquisition is actually costing more than double what Cedar Fair paid for the old Paramount Parks. In addition, the 10 Busch Entertainment parks were recently purchased by Blackstone for 2.7 Billion dollars, so that puts some perspective on this sale. Keep in mind that the $635 Million price tag you are seeing is only the cost incurred to buyout the shareholders and take complete control of Cedar Fair. The real cost to buy the parks includes the refinance of $1.95 Billion of the company's debt! Quote Link to comment Share on other sites More sharing options...
westcoaster Posted December 20, 2009 Share Posted December 20, 2009 Investment company's are not bad, they may bleed new captial improvements, they want a return on there investment. Its ashame, that Cedar Fair had to sell but it also seems they may have gotten too big too quick. And yep SOB is cheaper and easier to tear down more than likely! Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted December 20, 2009 Share Posted December 20, 2009 What does Apollo plan for Cedar Fair? http://www.sanduskyr...ont/1812772.txt This one deserves to be read in full. It contains, among other things, predictions by Dennis Speigel, who famously predicted Diamondback would be a dive coaster. He goes out on a limb on this one: ...And while it's impossible to predict exactly what will happen, theme park analyst Dennis Speigel said with confidence there will be major changes."When this deal closes for the Cedar Fair company, it may be better, it may be worse in the future, but it will change," said the president of the Cincinnati-based International Theme Park Services.Apollo is paying $2.4 billion for Cedar Fair. "I don't care what anybody says," Speigel said. "It's not business as usual."... It should be pointed out that Speigel and Kinzel are widely reported to be close personal friends. Another quote: ...Cedar Fair's CEO, Dick Kinzel, emphasized many aspects of Cedar Fair will stay the same.In an interview with the Register last week, Kinzel said Apollo agreed to retain him as the CEO and chairman of the new board Apollo will form to run the company. He said Apollo also agreed to keep Sandusky as the headquarters of Cedar Fair, which runs Cedar Point and 10 other amusement parks in the U.S. and Canada. No changes in staffing are planned, Kinzel said. Those assurances sound familiar, said Josh Kosman, a New York Post reporter who authored a new book, "The Buyout of America," which is about private equity firms such as Apollo. Kosman said that in two years of doing research for his book, he interviewed many chief executive officers "who were given similar assurances, and soon found out they had a very active boss."... and: ...Apollo was founded by Leon Black, a former banker with Drexel Burnham Lambert, which went into bankruptcy in 1990.Kosman referred to Black as a "right hand man" of Michael Milken, a prominent Drexel executive indicted in 1989 on 98 counts of racketeering and securities fraud. According to Wikipedia, Milken's critics cited him as the epitome of Wall Street greed during the 1980s, and nicknamed him the Junk Bond King. Kosman said the general track record of private equity companies is when they acquire a new company, they cut back on capital spending, reduce customer service and raise prices. "Leon's track record is particularly bad, even within the private equity world," Kosman said.... There are many other quotable parts of this article. It deserves to be READ. For an article from Allentown, PA (home of Dorney), where Mr. Kinzel again says virtually nothing will change but the Board of Directors and the financing (but he will stay...), see: http://www.morningjo...s/mj2051547.txt Quote Link to comment Share on other sites More sharing options...
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