Six Flags Entertainment Corp. priced various senior unsecured notes in a private offering.
The company priced $500 million of its newly issued 5.5% senior notes due 2027 at an offering price of 100% of the principal amount. Further, it issued an additional $700 million of 4.875% senior notes due 2024 at an offering price of 99% of the principal amount. The notes will yield to maturity of 5.039%. The 2024 notes will be issued as additional notes under the indenture governing the outstanding $300 million of Six Flags' 2024 notes issued June 16, 2016.
The company plans on using the net proceeds from this offering to repurchase any and all of the outstanding 5.25% senior notes due 2021 through a tender offer and consent solicitation announced March 30, or to redeem any of the 2021 notes that remain outstanding if less than all of the outstanding 2021 notes are repurchased in the tender offer. The company also plans to use the net proceeds for general corporate reasons, including share repurchases and transaction expenses.
The offering is expected to close on or about April 13, subject to customary closing conditions.