Cedar Fair Announces Successful Closing of $1.0 Billion Term Loan B and $300 Million Revolving Credit Facility
May 01 2024 - 4:05PM
Business Wire
Cedar Fair, L.P. (NYSE: FUN) (the “Company”), a leader in
regional amusement parks, water parks, and immersive entertainment,
today announced it has entered into new credit facilities (the “New
Credit Facilities”), comprising of a 7-year $1.0 billion senior
secured term loan B maturing in 2031 and a new $300 million
revolving credit facility maturing in 2028.
Cedar Fair is using the proceeds from the new term loan and cash
on hand to fund the previously announced redemption of all of its
outstanding $1.0 billion 5.500% Senior Secured Notes due in May
2025 on May 2, 2024, and to pay related expenses of the
refinancing. The new revolving credit facility will replace Cedar
Fair’s existing revolving credit facility.
“We are very pleased with the solid execution of the transaction
and strong market demand for our term loan,” said Cedar Fair CFO
Brian Witherow. “The overall strength of our balance sheet and
strong 2023 financial performance created an opportunity for us to
extend maturities and gain capital structure flexibility at
market-favorable rates. We appreciate the strong support and
continued confidence of our relationship banks and the debt capital
markets.”
The interest rate for the term loan will be Term SOFR plus a
margin of 2.00% per annum. The interest rate for borrowings under
the revolving credit facility will be Term SOFR or Term CORRA plus
a margin of 2.00% per annum. The New Credit Facilities are subject
to customary affirmative, negative and financial covenants.
Goldman Sachs served as lead arranger and Weil, Gotshal &
Manges LLP represented Cedar Fair as borrower’s counsel. Additional
joint lead arrangers on the deal are Wells Fargo Securities, LLC,
PNC Capital Markets LLC, Citizens Bank, N.A., Fifth Third Bank,
National Association, JPMorgan Chase Bank, N.A. through its agent
J.P. Morgan Securities LLC, KeyBanc Capital Markets Inc., Capital
One, National Association, HSBC Securities (USA) Inc. and Texas
Capital Bank.
About Cedar Fair
Cedar Fair Entertainment Company (NYSE: FUN), one of the largest
regional amusement-resort operators in the world, is a publicly
traded partnership headquartered in Sandusky, Ohio. Focused on its
mission to make people happy by providing fun, immersive, and
memorable experiences, the Company owns and operates 13 properties,
consisting of 11 amusement parks, four separately gated outdoor
water parks, and resort accommodations totaling more than 2,300
rooms and more than 600 luxury RV sites. Cedar Fair’s parks are
located in Ohio, California, North Carolina, South Carolina,
Virginia, Pennsylvania, Minnesota, Missouri, Michigan, Texas and
Toronto, Ontario.
Forward-Looking
Statements
Some of the statements contained in this news release that are
not historical in nature constitute “forward-looking statements”
within the meaning of Section 27A of the Securities Act of 1933 and
Section 21E of the Securities Exchange Act of 1934, including
statements as to the Company’s expectations, beliefs, goals,
strategies regarding the future and the satisfaction of any
conditions relating to the Redemption. These estimates,
projections, and other forward-looking statements may involve risks
and uncertainties that are difficult to predict, may be beyond our
control and could cause actual results to differ materially from
those described in such statements. Although the Company believes
that the expectations reflected in such forward-looking statements
are reasonable, it can give no assurance that such expectations
will prove to be correct. Important factors, including general
economic conditions, the impacts of public health concerns, adverse
weather conditions, competition for consumer leisure time and
spending, unanticipated construction delays, changes in the
Company’s capital investment plans and projects and other factors
discussed from time to time by the Company in its reports filed
with the Securities and Exchange Commission (the “SEC”) could
affect attendance at the Company’s parks and the Company’s growth
strategies, and cause actual results to differ materially from the
Company’s expectations or otherwise to fluctuate or decrease.
Additional information on risk factors that may affect the business
and financial results of the Company can be found in the Company’s
Annual Report on Form 10-K and in the filings of the Company made
from time to time with the SEC. The Company undertakes no
obligation to publicly update or revise any forward-looking
statements, whether a result of new information, future events,
information, circumstances or otherwise that arise after the
publication of this document.
This news release and prior releases are
available under the News tab at https://ir.cedarfair.com
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version on businesswire.com: https://www.businesswire.com/news/home/20240501081575/en/
Investor Contact: Michael Russell, 419.627.2233 Media Contact:
Gary Rhodes, 704.249.6119 Alternate Media Contact: Andrew Siegel /
Lucas Pers, Joele Frank, 212.355.4449
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