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Six Flags gets $200 million revolver, $935 million of term loans
By Angela McDaniels
Tacoma, Wash., Dec. 20 - Six Flags Entertainment Corp. entered into a new $1.14 billion credit facility that includes a $200 million five-year revolving credit facility, a $75 million five-year term loan A and a $860 million seven-year term loan B, according to a company news release.
The interest rate is Libor plus 225 basis points for the revolver and term loan A and Libor plus 325 bps for the term loan B.
The term loan B pricing includes a Libor floor of 1%.
The bookrunners were Wells Fargo Securities, LLC, Bank of America, NA, Barclays Bank plc, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and JPMorgan Chase Bank, NA.
The proceeds from the new $935 million term loans were used, along with $15 million of existing cash, to retire a pre-existing $950 million term loan. The revolver was undrawn at closing.
The company projects that the new facility will reduce its cash interest costs by more than $13 million annually and said it provides Six Flags with added financial flexibility, including a larger revolver and the ability to distribute incremental cash to shareholders in the form of dividends and share repurchases.
When the facility was launched on Nov. 30, it was expected to include a $200 million revolver, a $250 million term loan A and a $700 million term loan B. On Dec. 15, the term loan B was upsized to $860 million and the term loan A was downsized to $75 million.
The term loan B was expected to include an original issue discount of 99 and feature 101 soft call protection for one year, sources said.
Six Flags is a Grand Prairie, Texas-based regional theme park company.
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