CORRECTING and REPLACING Credit Facility Amendment Provides Additional Financial Flexibility to Six Flags
August 27 2020 - 09:06AM
Business Wire
Please replace the release (dated August 26, 2020) with the
following corrected version due to multiple revisions.
The updated release reads:
CREDIT FACILITY AMENDMENT PROVIDES
ADDITIONAL FINANCIAL FLEXIBILITY TO SIX FLAGS
Six Flags Entertainment Corporation (NYSE: SIX), the world’s
largest regional theme park company and the largest operator of
waterparks in North America, today announced that it has amended
its credit facility to further extend the covenant waiver period by
one year, from the fourth quarter of 2020 to the fourth quarter of
2021, and to extend the covenant modification period by one year
through the fourth quarter of 2022. In addition, all of the
company’s incremental revolving credit lenders agreed to extend the
incremental $131 million revolving commitments by one year.
“The operational actions we have taken to respond to the
COVID-19 crisis, coupled with the one-year extension of both our
covenant waiver period and the incremental revolving credit
facility commitments, provide us with significant flexibility and
financial strength as we manage through the pandemic-related
disruption,” said Mike Spanos, President and CEO. “We remain
focused on safely reopening more of our parks, profitably growing
our base business, and reducing our net leverage ratio.”
Credit Facility Amendment
The amendment will, among other benefits, extend the suspension
of the testing of the senior secured leverage ratio financial
maintenance covenant through the end of 2021, unless the company
elects to resume the net leverage covenant earlier. Commencing with
the first quarter of 2022, through the third quarter of 2022, the
company may elect to calculate the net leverage covenant by
substituting Borrower Consolidated Adjusted EBITDA, as defined in
the credit agreement, from the second, third and fourth quarters of
2021 with Borrower Consolidated Adjusted EBITDA from the second,
third and fourth quarters of 2019. As a result, this amendment will
eliminate the use of Borrower Consolidated Adjusted EBITDA from
2020, and from the second, third, and fourth quarters of 2021, in
any net leverage covenant test. In addition, the company has agreed
to extend the duration of the minimum liquidity covenant through
December 31, 2022.
About Six Flags Entertainment Corporation
Six Flags Entertainment Corporation is the world’s largest
regional theme park company and the largest operator of waterparks
in North America, with 26 parks across the United States, Mexico
and Canada. For 59 years, Six Flags has entertained millions of
families with world-class coasters, themed rides, thrilling
waterparks and unique attractions. For more information, visit
www.sixflags.com.
Forward Looking
Statements
This release contains forward-looking statements within the
meaning of Section 27A of the Securities Act and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements
regarding (i) our ability to continue to safely and profitably
operate our parks, or reopen our parks that are temporarily closed,
in accordance with CDC and local health guidelines, (ii) estimates
of our net cash outflow during the time our operations are limited
or fully suspended and for the balance of the year, (iii) the
adequacy of our preparations for or the sufficiency of our
liquidity, (iv) expectations regarding future actions and
initiatives to increase profitability and resilience, and (v) our
ability to significantly improve our financial performance and the
guest experience. Forward-looking statements include all statements
that are not historical facts and often use words such as
"anticipates," "intends," "plans," "seeks," "believes,"
"estimates," "expects," "may," "should," "could" and variations of
such words or similar expressions. These statements may involve
risks and uncertainties that could cause actual results to differ
materially from those described in such statements. These risks and
uncertainties include, among others, factors impacting attendance,
such as local conditions, natural disasters, contagious diseases,
including the novel coronavirus (COVID-19), or the perceived threat
of contagious diseases, events, disturbances and terrorist
activities; regulations and guidance of federal, state and local
governments and health officials regarding the response to
COVID-19, including with respect to business operations, safety
protocols and public gatherings; recall of food, toys and other
retail products sold at our parks; accidents or contagious disease
outbreaks occurring at our parks or other parks in the industry and
adverse publicity concerning our parks or other parks in the
industry; availability of commercially reasonable insurance
policies at reasonable rates; inability to achieve desired
improvements and our financial performance targets set forth in our
aspirational goals; adverse weather conditions such as excess heat
or cold, rain and storms; general financial and credit market
conditions, including our ability to access credit or raise
capital; economic conditions (including customer spending
patterns); changes in public and consumer tastes; construction
delays in capital improvements or ride downtime; competition with
other theme parks, waterparks and entertainment alternatives;
dependence on a seasonal workforce; unionization activities and
labor disputes; laws and regulations affecting labor and employee
benefit costs, including increases in state and federally mandated
minimum wages, and healthcare reform; environmental laws and
regulations; laws and regulations affecting corporate taxation;
pending, threatened or future legal proceedings and the significant
expenses associated with litigation; cybersecurity risks and other
factors could cause actual results to differ materially from the
company’s expectations, including the risk factors or uncertainties
listed from time to time in the Company’s filings with the
Securities and Exchange Commission (the “SEC”). Although we believe
that the expectations reflected in such forward-looking statements
are reasonable, we make no assurance that such expectations will be
realized and actual results could vary materially. Reference is
made to a more complete discussion of forward-looking statements
and applicable risks contained under the captions "Cautionary Note
Regarding Forward-Looking Statements" and "Risk Factors" in our
Annual and Quarterly Reports on Forms 10-K and 10-Q, and our other
filings and submissions with the SEC, each of which are available
free of charge on the company’s investor relations website at
investors.sixflags.com and on the SEC’s website at www.sec.gov.
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version on businesswire.com: https://www.businesswire.com/news/home/20200826005690/en/
Stephen R. Purtell Senior Vice President Investor Relations and
Treasurer +1-972-595-5180 investors@sftp.com
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