Six Flags

[Captain Picard]

Just heard on the news that Six Flags is pursuing sale of company. There was some big names looking at it in the past.

[KIBeast]

I doubt the whole chain is being sold. Got a link to the article where you read this? They have been selling off some of their parks.

[Captain Picard]

I seen it on cnbc. http://news.moneycentral.msn.com/provider/...0825&ID=5064259

http://biz.yahoo.com/rb/050825/leisure_sixflags.html?.v=1

http://biz.yahoo.com/bizj/050825/1155426.html?.v=1

[KIBeast]

Thanks. This is not coming as a surprise since they have pretty much wrecked the entire chain with their overspending on captial improvements and ignoring the simple things like cleanliness and friendly employees. Last I read, Dan Snyder, owner of the Washington Redskins, was wanting to take over management of the properties. He had some good ideas like improving customer service and selling off land that wasn't being used to avoid paying taxes on it.

[flightoffear1996]

Selling off the land maybe kinda dumb cause then you would have to tear down other rides to build new ones and I really hate it when PKI does that. Another thing is that the Six Flags parks have some sweet rides but just lack the service and have too many parks that just plain suck.

[jzarley]

I would imagine that to some extent this is a "put up, or shut up" call out to Dan Snyder. By putting themselves in the ring for sale, it negates the "poison pill" provision which Snyder has stated as the reason for only wanting to obtain 35% ownership.

They've got to do something...six years of straight losses and a choking debt load is slowly but surely killing them. (The interest on their debt alone is $200 million a year! That's half the price Paramount paid for KI in '92 that they're shelling out every year just in INTEREST.)

There was a really insightful article on the Motley Fool that I think really summarizes SF's issues. (Plus, it gives PKI a positive plug at the same time...)

http://www.fool.com/news/commentary/2005/c...ogvisit=y&npu=y

Joel

[Skippy]

Paramount Parks should buy the company and then sell all the parks Then they would have the rights to all the Warner Bros. movies and television shows, making it easier for them to find a property to theme a ride to! To bad it'll never happen

[jzarley]

(The interest on their debt alone is $200 million a year! That's half the price Paramount paid for KI in '92 that they're shelling out every year just in INTEREST.)

I misspoke (or, mistyped <g>), what I meant to say is that it's half the amount Paramount paid for KECO in '92 (not just KI).

Joel

[The Interpreter]

(The interest on [six Flags'] debt alone is $200 million a year! That's half the price Paramount paid for KI in '92 that [six Flags is] shelling out every year just in INTEREST.)

I misspoke (or, mistyped <g>), what I meant to say is that it's half the amount Paramount paid for KECO in '92 (not just KI).

Joel

Gee, I wonder what amount Cedar Fair is now paying in interest each year?

[jzarley]

(The interest on [six Flags'] debt alone is $200 million a year! That's half the price Paramount paid for KI in '92 that [six Flags is] shelling out every year just in INTEREST.)

I misspoke (or, mistyped <g>), what I meant to say is that it's half the amount Paramount paid for KECO in '92 (not just KI).

Joel

Gee, I wonder what amount Cedar Fair is now paying in interest each year?

Wow...this has to be a record for the amount of time passed between a post and a follow-up

According to the 10K that CF filed for the FY ending 12/31/06, they paid roughly $88M in interest expense for the year. Of course, they didn't close on the financing for the Paramount Parks acquisition until mid-year, so that doesn't reflect a full year's results with the "new" debt.

At their current debt and rate (and accounting for the $500M debt they retired with the new financing), their yearly interest expense should fall in the neighborhood of $150-160M (based on my math anyway...)

http://yahoo.brand.edgar-online.com/fetchF...5&Type=HTML