*Bear Stearns is leading an approximately $1.85 billion credit facility for Cedar Fair. The deal consists of a five-year, $350 million revolver and a six-year, $1.495 billion term loan. At launch, pricing was set at LIBOR plus 1 3/4%, but it was pumped up to LIBOR plus 2 1/2%, according to an investor shown the deal. Calls to a Bear Stearns banker were not returned.
"I feel like we're getting more traction with some of these bigger deals," said one portfolio manager. Cedar Fair is just the latest in an increasing number of large deals that have had pricing upped in order to clear syndication. Wachovia bumped up pricing on Globalstar, and JPMorgan and Deutsche Bank bumped up pricing on Aspect Communications (CIN, 6/26).
The Cedar Fair credit will be used to finance its $1.24 billion acquisition of Paramount Parks Inc. from CBS Corp., as well as repay an existing $500 million credit facility set to expire in 2007, according to a spokeswoman. The previous facility consisted of a $180 million revolver, priced at LIBOR plus 75 basis points, which Cedar Fair chose to increase to $250 million in May, as well as a $365 million fixed-rate term debt, priced in the range of 4.72% to 6.68%. The previous facility was led by Key Bank, who is acting as arranger on the new deal.