U.K. Economy Grew 0.5% in Fourth Quarter, Missing Median Estimate of 0.6%

Cedar Fair Seeks Price Cut on $1.175 Billion Term Loan

Cedar Fair LP, the amusement-park operator, is meeting with lenders on Feb. 11 to refinance its $1.175 billion loan to reduce borrowing costs, according to a person with knowledge of the transaction.

The existing loan, which matures December 2016, pays 4 percentage points more than the London interbank offered rate and has a 1.5 percent floor on the lending benchmark, according to data compiled by Bloomberg. The debt, which was placed in July, was issued at 99 cents on the dollar, the data show.

“We suspect the company will look not only to reduce interest costs but may also try to loosen financial ratio covenants to allow for modest dividends to be reinstated to shareholders,” Barbara Cappaert, an analyst at KDP Advisors Inc., wrote in a report today.

If Cedar Fair doesn’t seek covenant relief, it might offer to cut the borrowing cost to 3 percentage points to 3.25 percentage points more than the Libor, with a possible 1 percent floor, Cappaert said. The interest-rate reduction could result in annual savings of $11 million, according to Cappaert.

JPMorgan Chase & Co. and Keybank NA arranged the financing, according to Bloomberg data.

Stacy Frole, a spokeswoman for Cedar Fair, declined to comment.

The Sandusky, Ohio-based company called off a takeover by an Apollo Management LP affiliate in April after shareholders resisted the offer.

To contact the reporter on this story: Krista Giovacco in New York at

To contact the editor responsible for this story: Faris Khan at

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.