Cedar Fair to repay senior secured debt with $70 million park sale

By E. Janene Geiss

Philadelphia, Sept. 19 - Cedar Fair Entertainment Co. announced on Monday that it will sell its California's Great America amusement park for $70 million in cash, using the proceeds to reduce its senior secured debt.

The company said it has entered into a definitive agreement to sell the Santa Clara, Calif., park to JMA Ventures, LLC.

Cedar Fair purchased the park in 2006.

Company officials said it determined that divesting a smaller park like California's Great America at an attractive market value created a compelling business opportunity that it couldn't pass up.

"Among other things, it provides us the opportunity to immediately de-lever our balance sheet resulting in additional financial flexibility for growth and unitholder value creation in the future," said Dick Kinzel, Cedar Fair's chief executive officer.

The company said it remains committed to driving top-line growth through combination of new rides and attractions, marketing initiatives and related strategic expansion around its entire portfolio of premier entertainment venues.

With the divestiture, it has the financial flexibility that it needs to achieve its goals.

Cedar Fair is a Sandusky, Ohio-based regional amusement-resort operator.

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