SeaWorld Initial Public Offering Plan Reported--$500-$600 Million

[Leland Wykoff]

Reuters reports the Blackstone Group LP is planning an initial public offering of SeaWorld Parks and Entertainment in the $500 to $600 million range, likely in early 2013.

Blackstones use of cash and debt at SeaWorld has been characterized as "aggressive" as $600 million has been paid out in dividends to Blackstone. Management fees and consultant fees likely have been hefty as well.

For the Reuters story please see:

http://www.reuters.com/article/2012/12/15/us-seaworld-ipo-idUSBRE8BD1CJ20121215

[The Interpreter]

As would be the case right about now had Mr. Kinzel and Apollo Global had their way with FUN.

[Leland Wykoff]

Two days after appearing on KICentral.com the Orlando Sentinel stumbles upon the SeaWorld plans to go public. A few more details are provided along with the "declined comment" from Blackstone:

http://articles.orlandosentinel.com/2012-12-17/business/os-seaworld-exploring-ipo-20121217_1_seaworld-orlando-seaworld-parks-entertainment-tampa-and-williamsburg

Enjoy!

Leland Wykoff

[Leland Wykoff]

SeaWorld files $100 million IPO. Six Flags and Cedar Fair on watch.

http://www.streetinsider.com/Trader+Talk/Six+Flags+%28SIX%29,+Cedar+Fair+%28FUN%29+On+Watch+Following+SeaWorld+IPO+Filing/7971146.html

More detailed report from the DealBook at the New York Times:

http://dealbook.nytimes.com/2012/12/27/seaworld-files-to-go-public/

Leland Wykoff

[TTD-120-420]

When do people find out how much it will cost per unit?

[jzarley]

Some interesting financial details about the parks were released ahead of the IPO...

http://www.orlandosentinel.com/business/tourism/os-cfb-tourism-1231-20121230,0,174681.story

[jzarley]

When do people find out how much it will cost per unit?

That's normally not determined until just before the IPO launch (although, analysts usually make pretty accurate--in most cases--estimates ahead of time). Prior to the IPO, company management will go out on a "road show" where they'll do presentations to institutional investors, fund managers, investment banks, etc. The feedback/reaction the company gets during this period will help determine how they price the initial offering.

[Leland Wykoff]

More:

http://www.fool.com/investing/general/2013/01/02/seaworld-gets-ready-for-its-ipo.aspx

[jzarley]

^ that's an interesting analysis...it definitely seems like comparing Disney stock to a potential Sea World offering is comparing apples to oranges...just by nature of their holdings, a public SW company would look a lot more like FUN or SIX than it would DIS or NBC/Universal.

[Leland Wykoff]

For more thoughts on the coming SeaWorld IPO please see:

http://dealbook.nytimes.com/2013/01/03/can-seaworld-make-a-splash-in-its-i-p-o/

The returns Blackstone has achieved as well as the likely returns to future shareholders is considered.

Hum.