The Interpreter Posted July 29, 2010 Share Posted July 29, 2010 Cedar Fair COMPLETES REFINANCING OF SENIOR SECURED CREDIT FACILITIESSANDUSKY, OHIO, July 29, 2010 – Cedar Fair Entertainment Company (NYSE: FUN), a leader in regional amusement parks, water parks and active entertainment, today announced that it has successfully completed the refinancing of its existing senior secured credit faciltities with new senior secured credit facilities (the "2010 Senior Secured Credit Facilities"), consisting of a $260 million revolving credit facility and a $1,175 million term loan. "By successfully refinancing our debt, we accomplished two priorities: greater certainty within our capital structure and significantly enhanced financial flexibility," said Dick Kinzel, Cedar Fair's chairman, president and chief executive officer. "The fact that we were able to complete a transaction like this in an uncertain economic environment is a testament to the enthusiasm our lending partners have for our business model, growth potential and value creation. We truly appreciate the strong support of our relationship banks and the debt capital markets." The refinancing significantly extends the maturities of the Company's debt, with the revolving credit facility maturing in July 2015 and the senior secured term loan maturing in December 2016. "This financing provides us with long-term stability in our capital structure as our earliest debt maturity, the revolving credit facility, is five years out," added Peter Crage, Cedar Fair's corporate vice president of finance and chief financial officer. "In addition, we believe the new covenants offer us the necessary flexibility we need to successfully pursue our strategy, which includes continued re-investment in our parks, debt reduction, as well as distributions at an appropriate time in the future." The interest rate for the $1,175 million senior secured term loan will be LIBOR plus a margin of 4.0% per annum, with a LIBOR floor of 1.5%. The interest rate for borrowings under the $260 million revolving credit facility will be LIBOR plus a margin of 4.0% per annum. The 2010 Senior Secured Credit Facilities are subject to customary affirmative, negative and financial covenants. About Cedar Fair Cedar Fair is a publicly traded partnership headquartered in Sandusky, Ohio, and one of the largest regional amusement-resort operators in the world. The Company owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. Amusement parks in the Company's northern region include two in Ohio: Cedar Point, consistently voted "Best Amusement Park in the World" in Amusement Today polls and Kings Island; as well as Canada's Wonderland, near Toronto; Dorney Park, PA; Valleyfair, MN; and Michigan's Adventure, MI. In the southern region are Kings Dominion, VA; Carowinds, NC; and Worlds of Fun, MO. Western parks in California include: Knott's Berry Farm; California's Great America; and Gilroy Gardens, which is managed under contract. For more information on Cedar Fair, visit the Company's website at: www.cedarfair.com. Forward-Looking Statements Some of the statements contained in this news release constitute "forward-looking statements" within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including statements as to the Company's expectations, beliefs and strategies regarding the future. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Important factors, including general economic conditions, competition for consumer leisure time and spending, adverse weather conditions, unanticipated construction delays and other factors discussed from time to time by the Company in reports filed with the Securities and Exchange Commission (the "SEC") could affect attendance at our parks and cause actual results to differ materially from the Company's expectations. Additional information on risk factors that may affect the business and financial results of the Company can be found in the Company's Annual Report on Form 10-K and in the filings of the Company made from time to time with the SEC. The Company undertakes no obligation to correct or update any forward-looking statements, whether as a result of new information, future events or otherwise. This news release and prior news releases are available on line at www.cedarfair.com http://www.cedarfair...eases/index.cfm Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted July 31, 2010 Author Share Posted July 31, 2010 This usually reliable paper published this: http://toledoblade.c...1/-1/BUSINESS06 Which leaves a huge misimpression. Nothing in it is inaccurate, and yet it is grossly misleading. It leaves out the $405 million note sale which occurred the VERY SAME DAY, and which is also debt. It would lead the reader to believe that Cedar Fair has greatly reduced its debt levels from before. It has not. And I point out, Cedar Fair has refinanced...that does not amount to paying down debt in any reasonable investor's book. In point of fact, the units have not dramatically reacted to this transaction either way...which they would have had this been a repayment of debt. The Toledo Blade reporter made the mistake of only reading the ONE press release and gently rewriting it...ignoring (as did the press release) this: http://www.KICentral...ndpost&p=391627 The reporter also needed to read the second press release of the same day: http://www.cedarfair...ured%20debt.pdf Sloppy, sloppy, sloppy... Terp, who would have been given a new job (or at least been minus one) had he done this... Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 9, 2011 Author Share Posted February 9, 2011 Cedar Fair Seeks Refi: Cedar Fair LP, the amusement-park operator, is meeting with lenders on Feb. 11 to refinance its $1.175 billion loan to reduce borrowing costs, according to a person with knowledge of the transaction...."We suspect the company will look not only to reduce interest costs but may also try to loosen financial ratio covenants to allow for modest dividends to be reinstated to shareholders," Barbara Cappaert, an analyst at KDP Advisors Inc., wrote in a report today. If Cedar Fair doesn't seek covenant relief, it might offer to cut the borrowing cost to 3 percentage points to 3.25 percentage points more than the Libor, with a possible 1 percent floor, Cappaert said. The interest-rate reduction could result in annual savings of $11 million, according to Cappaert.... http://www.businessw...-term-loan.html Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 9, 2011 Share Posted February 9, 2011 So if Cedar Fair doesn`t ask for covenant relief, they could save $11 million in interest expense annually? That`s a pretty significant sum, although it pales in comparison to their overall loan amount of $1.175 billion. I`m sure they are under pressure from Q to raise the cash distribution some. It will be interesting to see when we hear anything more about this meeting that is slated to take place on Friday. Remember, Cedar Fair is having a conference call on Tuesday. And, Cedar Fair units today closed up 59 cents to $19.03. Its been a long time since they traded above $19. Now if only it can make its way back into the mid to high 20s, where it was back in 2007-2008. Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 11, 2011 Author Share Posted February 11, 2011 Feb. 11 (Bloomberg) -- Cedar Fair LP, the amusement-park operator, set pricing on a $1.175 billion loan to reduce borrowing costs, according to a person with knowledge of the transaction. The company is proposing to pay interest 3 percentage points to 3.25 percentage points more than the London interbank offered rate, said the person, who declined to be identified because the terms are private. Libor, the lending benchmark, will have a 1.25 percent floor. Sandusky, Ohio-based Cedar Fair may sell the loan at par, said the person. Lenders must let JPMorgan Chase & Co., the bank leading the transaction, know by Feb. 17 if they will participate in the deal, the person said.... http://www.businessweek.com/news/2011-02-11/cedar-fair-sets-pricing-on-1-175-billion-loan-to-refinance-debt.html Quote Link to comment Share on other sites More sharing options...
Browntggrr Posted February 25, 2011 Share Posted February 25, 2011 Cedar Fair’s Loan to Refinance Debt Said to Rise in First Trade Cedar Fair LP’s $1.175 billion term loan to refinance debt rose in its initial trade, according to a person with knowledge of the transaction.The loan due December 2017, which was sold at par, began trading at 100.625 cents on the dollar, said the person who declined to be identified because the trades are private. http://www.businessweek.com/news/2011-02-23/cedar-fair-s-loan-to-refinance-debt-said-to-rise-in-first-trade.html Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 25, 2011 Share Posted February 25, 2011 Which means what for Cedar Fair`s bottom line? Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 25, 2011 Author Share Posted February 25, 2011 Not one thing. At least not in a direct and tangible way. It means the notes are selling at more than what they were originally sold for, as the buyers are more confident of being repaid than was anticipated. IF the reports are correct. The transactions are private, not publicly disclosed, and the leak could be correct. Or completely fabricated. No one knows but the buyers themselves and the sellers (who were the original buyers of the notes). Were the loan to continue to sell for more than par, and perhaps at least another 50 basis points (half a percent) more than par, it could indicate FUN could refinance again at more favorable terms. Overall though, it is a good thing if the market believes it....but the way the general market is going in the short term, oil and Libya and even the federal government budget situation have more to do with the price of Cedar Fair than the cost of the loan on the secondary market. Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 25, 2011 Share Posted February 25, 2011 An update from Cedar Fair about restructuring their financing. http://cedarfair.com/ir/press_releases/index.cfm?current_root=15&mode=story&story_id=294 Quote Link to comment Share on other sites More sharing options...
The Interpreter Posted February 26, 2011 Author Share Posted February 26, 2011 Curious, curious language in that thar press release: ....In 2011 the general distribution basket has been increased to $60 million from $20 million. This basket will revert back to $20 million beginning in 2012, while the parameters surrounding the excess cash flow sweep have been widened for 2012 and beyond. The customary affirmative and financial covenants remain unchanged.... 55,330,000 units outstanding. So, enough for $1 a unit per year in 2011 ONLY, then back to no more than about 9 cents per unit per quarter thereafter...except "the parameters surrounding the excess cash flow sweep have been widened for 2012 and beyond." What the thunder does that mean? I could interpret that in many, conflicting ways....If obfuscation was the goal, they did very well indeed. Quote Link to comment Share on other sites More sharing options...
KIfan1980 Posted February 26, 2011 Share Posted February 26, 2011 And I read it and said "Well I guess I'll wait for Terpy to explain that" Quote Link to comment Share on other sites More sharing options...
CoastersRZ Posted February 26, 2011 Share Posted February 26, 2011 Yeah. The first part made sense, and then I got confused by that second part. If they can only give out $20 million in distributions in 2012, why even mention the second part? (It certainly seems like they are trying to appease Q. But if one is a unit holder in Cedar Fair, you have to wonder what they have planned for cash distributions in 2012. Quote Link to comment Share on other sites More sharing options...
IndyGuy4KI Posted February 26, 2011 Share Posted February 26, 2011 Yeah. The first part made sense, and then I got confused by that second part. If they can only give out $20 million in distributions in 2012, why even mention the second part? (It certainly seems like they are trying to appease Q. But if one is a unit holder in Cedar Fair, you have to wonder what they have planned for cash distributions in 2012. Glad it was not just me that felt the same way! Quote Link to comment Share on other sites More sharing options...
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