Six Flags Launches $725 Million Bond Offering to Boost Its Cash Reserves
Amusement park and waterpark operator Six Flags Entertainment (NYSE: SIX) made a big splash today by announcing a major five-year bond offering. With its numerous parks and attractions closed for weeks by the COVID-19 coronavirus pandemic, the company is now seeking additional funding two weeks after it put a "poison pill" stockholder rights plan in place to shield itself from potential takeover attempts.
Initially, Six Flags privately offered senior secured notes in the amount of $665 million. Shortly thereafter, however, it upsized the bond offering by $60 million to $725 million. It revealed additional details at the same time, including the fact it's selling the bonds at 100% of their principal amount, with zero discount. The bonds are 7% notes and have a five-year maturity.
Image source: Six Flags St. Louis.
Source Fool.com
