Six Flags increases revolver by $131 million for greater flexibility

By Wendy Van Sickle

Columbus, Ohio, April 8 – Six Flags Entertainment Corp., Six Flags Operations Inc. and Six Flags Theme Parks Inc. amended their existing senior secured revolving credit facility for increased total revolving commitments of $481 million, according to an 8-K filing with the Securities and Exchange Commission.

The commitments include a $361 million portion, which bears increased interest of Libor plus 350 basis points, with two 25 bps step-downs upon achieving a senior secured leverage ratio of 2.50:1.00 and 1.25:1.00, respectively.

The revolving commitments were increased by $131 million from prior to Wednesday’s amendment.

In connection with the amendment, Six Flags agreed to not make any restricted payments, including the repurchase of equity securities and the payment of dividends, subject to some exceptions, until the earlier of Dec. 31, 2021, or such time as the replacement revolving credit commitments have been lowered by $131 million.

“The increase in our revolving credit facility, combined with actions we have taken to reduce operating expenses and capital expenditures, provides us with significant runway to operate in this uncertain environment,” Mike Spanos, president and chief executive officer of Six Flags, said in a news release announcing the revolver increase. “...Once we reopen our parks, we will redouble our efforts to profitably grow our base business and pay down debt.”

As previously announced, the company suspended operations of its North American parks beginning March 13 due to the spread of Covid-19. The company expects to keep its parks closed until at least mid-May.

The borrower is a Grand Prairie, Tex.-based theme park company.

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