Closing of $725 million senior secured notes offering and amendment to credit facility by Six Flags

By | April 23, 2020

GRAND PRAIRIE, Texas — Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of waterparks in North America, today announced that its indirect, wholly-owned subsidiary, Six Flags Theme Parks Inc. (“SFTP”) has closed its private offering of $725 million aggregate principal amount of senior secured notes. The net proceeds from this offering will be used to repay indebtedness and the remaining amount for general corporate matters and working capital purposes, including expenses relating to the transaction.

On April 22, 2020, the second amendment to SFTP’s credit facility became effective, which among other things, (i) permitted the issuance of the senior secured notes, including specifically, permitting the senior secured notes to mature earlier than SFTP’s term loan facility, (ii) suspended the senior secured leverage ratio financial maintenance covenant in the credit facility through the end of 2020, (iii) re-established the financial maintenance covenant thereafter and (iv) added a minimum liquidity covenant that will apply from the date of the amendment through December 31, 2021.

The newly issued senior secured notes will not be registered under the Securities Act of 1933, as amended (“Securities Act”), or the securities laws of any other jurisdiction, and will not be offered or sold in the United States or to U.S. persons absent registration or an applicable exemption from the registration requirements. The offering of the notes will be made only to qualified institutional buyers in accordance with Rule 144A under the Securities Act and to non-U.S. persons in accordance with Regulation S under the Securities Act.

This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security. No offer, solicitation, or sale will be made in any jurisdiction in which such an offer, solicitation, or sale would be unlawful. Any offers of the notes will be made only by means of a private offering memorandum.