Cedar Fair Announces Pricing of $300 Million Senior Unsecured Notes

Rhea-AI Summary

Cedar Fair, L.P. (NYSE: FUN) announced the pricing of $300 million in 6.500% senior notes due 2028, aimed at enhancing its financial flexibility. The notes, priced at 100% of the principal amount, are guaranteed by several subsidiaries and will support general corporate and working capital needs. The company has amended its credit facilities due to challenges posed by the COVID-19 pandemic. This offering will be available only to qualified institutional buyers and certain non-U.S. persons, without U.S. registration.

Positive

• Pricing of $300 million in senior notes is expected to improve financial flexibility.
• Amendments to credit facilities may enhance liquidity during the COVID-19 pandemic.

Negative

• Dependence on the COVID-19 recovery poses ongoing risks to business operations.
• Financial covenants have been suspended, indicating potential financial distress.

SANDUSKY, Ohio--(BUSINESS WIRE)--Cedar Fair, L.P. (NYSE: FUN) (the “Company” or “Cedar Fair”) today announced that it, together with its wholly owned subsidiaries Magnum Management Corporation (“Magnum”), Canada’s Wonderland Company (“Cedar Canada”) and Millennium Operations LLC (“Millennium”), has priced $300 million aggregate principal amount of 6.500% senior notes due 2028 (the “Notes”). The Notes were priced at 100% of the aggregate principal amount of notes offered. Obligations under the Notes will be guaranteed by the Company’s wholly owned subsidiaries that guarantee its senior secured credit facilities (other than Magnum, Cedar Canada and Millennium) (the “Credit Facilities”). The Company intends to use the net proceeds of the offering for general corporate and working capital purposes, including fees and expenses related to the transaction.

Completion of the offering of the Notes is subject to, among other things, standard closing conditions. The Company has amended its Credit Facilities to, among other things, permit the issuance of the Notes and suspend and revise certain of the financial covenants under the Credit Facilities, in part, in response to the novel coronavirus (“COVID-19”) pandemic-related disruption that the Company is experiencing in 2020.

The Notes are being offered only to persons reasonably believed to be qualified institutional buyers under Rule 144A of the Securities Act of 1933, as amended (the “Securities Act”), and to certain non-U.S. persons in transactions outside the United States under Regulation S of the Securities Act. The initial issuance and sale of the Notes will not be registered under the Securities Act and the Notes may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements of the Securities Act and other applicable securities laws.

This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Cedar Fair

Cedar Fair, L.P. (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. It also operates an additional theme park in California under a management contract.

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, Section 21E of the Securities Exchange Act of 1934 and the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including statements as to the Company’s expectations, beliefs, goals and strategies regarding the future. These 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 the impact of the COVID-19 global pandemic on our business and financial results, general economic conditions, 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 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 for the year ended December 31, 2019, the Company’s Quarterly Report on Form 10-Q for the quarterly period ended June 28, 2020 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 as a result of new information, future events, information, circumstances or otherwise that arise after the publication of this news release.

This news release and prior releases are available under the News tab at http://ir.cedarfair.com