Festival Fun Parks gets $141.5 million seven-year credit facility

By Angela McDaniels

Tacoma, Wash., Feb. 15 - Festival Fun Parks, LLC entered into a $141.5 million senior credit agreement on Feb. 6 for a seven-year term loan and revolving credit facility, according to a company news release.

Merrill Lynch Business Financial Services, Inc. is the agent.

The company said it also signed a $61.5 million investment agreement with Laminar Direct Capital LP and some additional financial institutions. This agreement is subordinated to the senior credit facility.

Proceeds from the facility and the investment agreement will be used to fund Festival Fun and Palace Finance, Inc.'s tender offer for their 10 7/8% senior notes due 2014, which ended on Friday; to refinancing the group's existing credit facilities; and for working capital.

One of the conditions of the credit facility and investment agreement is that the landlords under some of Festival Fun's leases must provide waivers to the new lenders. The company expects that this financing condition and all other conditions will be satisfied during the week of Feb. 18.

Festival Fun Parks is an amusement park operator based in Newport Beach, Calif.

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