Lehman Brothers last Tuesday launched syndication of a $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, notedJim Dannhauser, cfo.
"We wanted to enter the loan market while it is attractive, before the fourth quarter of 2004 when the "B" begins to amortize and the revolver commitments would have expired," Dannhauser stated. "Where the 'B' has been bid and other issuers provided indications that the market is attractive now." 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 21/ 4%, while on the old loan it is LIBOR plus 23/ 4% (see Credit in Focus, page 7).