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Home » Santa Clarita News » Six Flags Out Of The Danger Zone, Recovery Underway

Six Flags Out Of The Danger Zone, Recovery Underway

SixFlagsLogoBy Leon Worden/SCVNEWS.com

All signs point to a full recovery for the nation’s No. 1 theme park operator, two and a half years after it  filed for bankruptcy protection.

Standard & Poor’s removed all of Six Flags Entertainment Corp.’s ratings off of CreditWatch on Wednesday and upgraded its overall rating to BB from BB-. It’s still a non-investment grade, but it’s a sign of stability.


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The upgrade “reflects strong performance during 2011, which has resulted in a meaningful improvement to credit measures, which we believe can be sustained,” S&P said in a statement.

Share prices rose 3.43 percent Thursday and flirted with $40 after having seen levels as low as $24.72 within the past 52 weeks.

On Nov. 23 the company announced it is looking to refinance $1.15 billion in existing debt for the purpose of securing a lower interest rate – not the type of move a troubled company could make. It met with lenders Wednesday to discuss a plan that would give it a $200 million revolving line of credit, a $250 million term loan maturing in five years and a $700 million loan maturing in seven years.

S&P assigned a preliminary rating of BB+ to the company’s proposed $1.15 billion replacement credit facilities.

Six Flags listed $3 billion in assets and $2.4 billion in debt when it filed for bankruptcy protection in June 2009. By Dec. 30, 2010, it had lowered its outstanding long-term debt to $971 million. Annual revenues are approximately $1 billion.

Headquartered in Grand Prairie, Texas, Six Flags operates 19 theme parks in the United States, Mexico and Canada, including two in Valencia (Magic Mountain and Hurricane Harbor).

Six Flags Out Of The Danger Zone, Recovery Underway

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