By Paul A. Harris
Portland, Ore., April 18 – Six Flags Entertainment Corp. and Six Flags Theme Parks Inc. priced an $850 million issue of eight-year senior secured notes (Ba2/BB) at par to yield 6 5/8% on Thursday, according to market sources.
The yield printed at the tight end of yield talk in the 6¾% area. Initial guidance was in the high-6% to 7% area.
Goldman Sachs & Co. LLC was the left bookrunner. Joint bookrunners were Wells Fargo Securities LLC, PNC Capital Markets LLC, Citizens JMP Securities LLC, Fifth Third Securities Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Capital One Securities Inc., HSBC Securities (USA) Inc. and Texas Capital.
The deal was heard to be playing to $2.3 billion of demand on Thursday morning, a trader said.
Proceeds from the notes’ sale will be used to pay off the $479 million term loan B, as well as $180 million outstanding under the revolver and up to $165 million of 2025 notes. The remainder of the proceeds, plus other sources of cash, will go for general corporate purposes, including but not limited to working capital, operating expenses, capital expenditures, debt service requirements, and payment of the pre-merger special dividend.
Six Flags, an Arlington, Tex.-based theme park operator, underwent a merger of equals with Sandusky, Ohio-based regional amusement-resort operator Cedar Fair Entertainment Co. in November 2023. The combined company will operate as Six Flags and will be based in Charlotte, N.C.
| Issuers: | Six Flags Entertainment Corp. and Six Flags Theme Parks Inc.
|
| Amount: | $850 million
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| Issue: | Senior secured notes
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| Maturity: | May 1, 2032
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| Left bookrunner: | Goldman Sachs & Co. LLC
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| Joint bookrunners: | Wells Fargo Securities LLC, PNC Capital Markets LLC, Citizens JMP Securities LLC, Fifth Third Securities Inc., J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Capital One Securities Inc., HSBC Securities (USA) Inc. and Texas Capital
|
| Coupon: | 6 5/8%
|
| Price: | Par
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| Yield: | 6 5/8%
|
| Spread: | 198 bps
|
| First call: | May 1, 2027 at 103.313
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| Trade date: | April 18
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| Settlement date: | May 2
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| Ratings: | Moody’s: Ba2
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| S&P: BB
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾% area
|
| Marketing: | Roadshow
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