Six Flags Launches $830 Million Bankruptcy Exit Financing-Source

JPMorgan Chase & Co., Bank Of America Merrill Lynch, Barclays Capital and Deutsche Bank have launched $830 million of new loans supporting New York-based Six Flags Theme Parks' exit from bankruptcy, according to one person familiar with the situation.

The financing is split between a $680 million, six-year term loan and a $150 million, five-year revolving credit facility.

Both the term loan and the revolving credit facility pay an interest rate of 4.25% over the London interbank offered rate, or Libor, with the Libor floor set at 2%. This means that under no circumstances will the lenders earn less than 6.25% annual interest. Both the term loan and the revolver will be offered at a discount to par value. The discount is still to be decided, according to the person.

The theme park operator filed for bankruptcy last June in a deal handing a 92% ownership stake in the company to its banks in exchange for canceling $1.1 billion of debt.

-By Kate Haywood, Dow Jones Newswires; 212-416-2218; [e-mail]