Lehman Brothers on Tuesday launched syndication of the $1.05 billion refinancing for Six Flags Theme Parks, a deal that includes a repriced $600 million "B" loan. The current investor appetite for "B" paper and Six Flags' need to refinance within the next two years were the drivers behind the decision to return to the market, noted Jim Dannhauser, Six Flags CFO. "We wanted to enter the loan market when it is attractive, while in the fourth quarter of 2004, the "B" begins to amortize and the revolver commitments would have expired," he stated. "Where the "B" has been bid and other issuers provided indications the market is attractive," he added. The existing "B" has always been over par, he said and has been bid in the 101-102 range. Pricing on the new $600 million "B" is LIBOR plus 2 1/4%, while on the old loan it is LIBOR plus 2 3/4%.
Lehman Hits Market With Six Flags