Cedar Fair amends and pushes out maturity on $900 million term debt

By Sara Rosenberg

New York, Aug. 6 - Cedar Fair Entertainment Co. amended its credit facility and is extending the maturity date on $900 million of its term loan debt by two years to 2014, according to a news release.

The extended term loan is priced at Libor plus 400 basis points.

Under the amendment, the U.S. revolver size was reduced by $30 million and the Canadian revolver was reduced by $5 million.

In addition, the company is now permitted to get secured debt in the form of loans or bonds to repay existing term loans and allowed $150 million of sales/leasebacks, with 100% of net proceeds used to repay existing term loans ahead of extended term loans.

The company is also permitted asset sales in aggregate of greater than $250 million in fair market value, with 100% of net proceeds used to repay existing term loans ahead of extended term loans, and will include a revolving commitment reduction equal to 5% of the net proceeds upon such sale.

Lastly, the amendment allows for additional offerings of credit extensions.

"Improving our capital structure continues to be a priority for us," said Dick Kinzel, chairman, president and chief executive officer, in the release.

"At the end of last year, we had $1.7 billion in long-term debt, which was set to mature within the next three years. Since then, we have reduced our distribution rate, sold surplus land in Canada, and extended a significant portion of our term debt maturities. Taking these items into consideration, along with our regular annual amortization payments, we have now proactively reduced our refinancing risk in 2012.

"While these events have improved our capital structure, we will continue to monitor the markets for additional opportunities to reduce our leverage and strengthen our financial position over the long term," Kinzel added.

JPMorgan acted as lead arranger and bookrunner on the amendment and extension.

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

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