(Updates with maturity dates in second paragraph)
Nov. 23 (Bloomberg) -- Six Flags Entertainment Corp., the theme-park operator that emerged from bankruptcy last year, is seeking $1.15 billion of loans to refinance debt, according to a person with knowledge of the transaction.
Wells Fargo & Co. is arranging the deal for the Grand Prairie, Texas-based company, which will include a $700 million term loan B due in seven years, a $250 million term loan A maturing in five years and a $200 million revolving line of credit due in five years, said the person, who declined to be identified because the terms are private.
The bank will host a lender meeting on Nov. 30 in New York to discuss the financing, the person said.
Following the refinancing the company will have a “similar” amount of debt to its current levels, Six Flags said today in a statement distributed by PRNewswire. Six Flags has $971 million in long-term debt outstanding as of Dec. 30, according to a Nov. 7 regulatory filing.
Six Flags, which operates theme parks in the U.S., Mexico and Canada, sought U.S. Bankruptcy Court protection from creditors on June 13, 2009, listing assets of $3 billion and debt of $2.4 billion as of Dec. 31, 2008. Thirty-six affiliates also sought protection. On April 30, 2010, the court confirmed a plan of reorganization and the company exited bankruptcy.
Nancy Krejsa, a spokeswoman for Six Flags, declined to comment beyond the statement.
A term loan A is sold primarily to banks, while so-called B loans are mainly bought by non-bank lenders such as collateralized loan obligations, mutual funds and hedge funds. In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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