Cedar Fair/Six Flags may get $850 million revolver, $500 million term loan B

By Sara Rosenberg

New York, Jan. 31 – Cedar Fair/Six Flags has received a commitment for an $850 million senior secured revolving credit facility and assumes it will get a $500 million term loan B to help support the merger of Cedar Fair LP and Six Flags Entertainment Corp., according to a DEFM14A filed with the Securities and Exchange Commission on Wednesday.

The debt financing is the anticipated debt financing structure at closing, but the financing structure is subject to change at the discretion of Cedar Fair and Six Flags, the filing said.

The revolver and term loan B would be used to refinance in full the existing revolving credit facilities of each of Cedar Fair and Six Flags and the existing Six Flags term loan B.

Goldman Sachs Bank USA provided the revolver commitment.

At the signing of the merger agreement, Goldman had committed to provide a $2.3 billion senior secured 364-day bridge loan to redeem any outstanding Cedar Fair bonds that were not amended pursuant to a consent solicitation. On Nov. 9, 2023, the requisite consents from holders of the Cedar Fair bonds were obtained and, as a result, the bridge loan commitment was automatically and permanently reduced to $0.

Under the merger agreement, Cedar Fair unitholders will receive one share of common stock in the new combined company for each unit owned, and Six Flags shareholders will receive 0.58 shares of common stock in the new combined company for each share owned.

Following the close of the transaction, Cedar Fair unitholders will own about 51.2% and Six Flags shareholders will own around 48.8% of the combined company’s fully diluted share capital on a pro forma basis.

Closing is expected in the first half of this year, following receipt of Six Flags shareholder approval, regulatory approvals, and satisfaction of customary conditions.

Sandusky, Ohio-based Cedar Fair and Arlington, Tex.-based Six Flags are amusement park operators. Upon closing, the combined company will operate under the name Six Flags and be based in Charlotte, N.C.

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