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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of report (Date of earliest event reported) April 8, 2020

 

Six Flags Entertainment Corporation

(Exact name of registrant as specified in its charter)

 

Delaware

(State or other jurisdiction of incorporation)

 

1-13703

 

13-3995059

(Commission File Number)

 

(IRS Employer Identification No.)

924 Avenue J East

 

 

Grand Prairie, Texas

 

75050

(Address of principal executive offices)

 

(Zip Code)

 

(972) 595-5000

(Registrant’s telephone number, including area code)

 

 

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

      Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

      Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

      Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

      Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

    

Trading Symbol(s)

    

Name of each exchange on which registered

Common stock, $0.025 par value per share

SIX

New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Item 1.01

Entry into a Material Definitive Agreement

On April 8, 2020, Six Flags Entertainment Corporation (the “Company”), Six Flags Operations Inc. (“SFO”) and Six Flags Theme Parks Inc. (“SFTP”) amended their existing senior secured revolving credit facility by entering into (i) a Replacement Revolving Facility Amendment to Second Amended and Restated Credit Agreement (the “Replacement Amendment”), which establishes a $230 million replacement revolving credit facility, replacing $230 million of the $350 million existing revolving credit commitments and increasing the interest rate on the replacement revolving credit facility portion of the senior secured revolving credit facility to LIBOR plus 3.50% with two 0.25% step-downs upon achieving a Senior Secured Leverage Ratio of 2.50:1.00 and 1.25:1.00, respectively, and (ii) a First Incremental Amendment to Second Amended and Restated Credit Agreement (the “Incremental Amendment,” together with the Replacement Amendment, the “Credit Facility Amendments”), which increases the commitments under the replacement revolving credit facility by $131 million to $361 million, resulting in an aggregate amount of revolving credit commitments (including both the existing senior secured revolving credit facility and the replacement revolving credit facility as increased) equal to $481 million.

In connection with the Incremental Amendment, the Company agreed to not make any restricted payments, including the repurchase of equity securities and the payment of dividends, subject to certain exceptions, until the earlier of December 31, 2021, or such time as SFTP reduces the replacement revolving credit commitments by $131 million. In addition, SFTP elected to reduce the replacement revolving credit commitments by $131 million effective as of December 31, 2021.

The above summaries of the material terms of the Replacement Amendment and Incremental Amendment do not purport to be complete and are qualified in their entirety by reference to each of the Replacement Amendment and Incremental Amendment, copies of which are filed as Exhibit 10.1 and Exhibit 10.2, respectively, to this Current Report on Form 8-K and incorporated by reference herein.

Item 7.01

Regulation FD Disclosure

On April 8, 2020, the Company issued a press release announcing its entry into the Credit Facility Amendments and providing an update on current business operations in light of the COVID-19 pandemic. The press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

Item 8.01

Other Events

In light of the rapidly evolving COVID-19 pandemic, the Company is filing this Item 8.01 disclosure to supplement the risk factors described in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019. The following risk factor disclosure should be read in conjunction with the risk factors described in the Annual Report on Form 10-K.

The extent to which the coronavirus (COVID-19) pandemic and measures taken in response thereto impact our business, results of operations and financial condition will depend on future developments, which are highly uncertain and difficult to predict.

We are closely monitoring the outbreak of respiratory illness caused by COVID-19. The virus has spread to many countries and has been declared by the World Health Organization to be a pandemic, resulting in action from federal, state and local governments that has significantly affected virtually all facets of the U.S. and global economies. This pandemic and resulting actions pose the risk that we or our employees, contractors, suppliers, and other business partners may be prevented from conducting business activities for an unknown period of time. Restrictions on travel, quarantines and other measures imposed in response to the COVID-19 outbreak, as well as ongoing concern regarding the virus’ potential impact, have had and will likely continue to have a negative effect on economies and financial markets, including supply chain shortages and additional business disruptions.

On March 30, 2020, we announced that our parks will remain closed until mid-May, or as soon as possible thereafter, reflecting federal and local restrictions in place to mitigate the spread of COVID-19. We will continue to

closely monitor the evolving global health crisis and follow the most current guidance from federal, state, and local officials as we assess when we can reopen some or all of our parks.

The demand for parks, entertainment, recreation activities and discretionary travel is highly sensitive to downturns in the economy and the corresponding impact on discretionary consumer spending. Any actual or perceived deterioration or weakness in general, regional or local economic conditions, unemployment levels, the job or housing markets, consumer debt levels or consumer confidence, as well as other adverse economic or market conditions due to COVID-19 or otherwise, may lead to our customers having less discretionary income to spend on parks, entertainment, recreation activities and discretionary travel, any of which may have a material adverse effect on our business, financial condition, results of operations and prospects. The extent and duration of such impacts over the longer term remain largely uncertain and dependent on future developments that cannot be accurately predicted at this time, and therefore it is possible that the spread of the coronavirus may impact our customers’ interest in visiting our various properties and public facilities in the long-term.

Further, if the magnitude of COVID-19 continues or worsens, consumer behavior may be altered for an extended period of time, which would impact our overall cash and liquidity and financial condition. The economic disruption resulting from COVID-19 has also led to significant volatility in the capital markets and may adversely impact our ability to access cash. Any one adverse effect of the COVID-19, or a combination of adverse effects, could materially impact our results, operations and financial condition. Our actual results could differ materially from our guidance due to this risk, and other uncertainties and factors.

There are no comparable recent events that provide guidance as to the effect the spread of COVID-19 as a global pandemic may have, and, as a result, the ultimate impact of the pandemic is highly uncertain and subject to change. We do not yet know the full extent of the impacts on our business, our operations or the global economy as a whole. However, the effects could have a material impact on our results of operations and heighten many of our known risks described in the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2019.

Item 9.01

Financial Statements and Exhibits

(d)            Exhibits

10.1

First Incremental Amendment to Second Amended and Restated Credit Agreement, dated as of April 8, 2020, among Six Flags Entertainment Corporation, Six Flags Operations Inc., Six Flags Theme Parks Inc., the other subsidiary guarantors party thereto, Wells Fargo Bank, National Association, as administrative agent, and the revolving credit lenders party thereto

10.2

Replacement Revolving Facility Amendment to Second Amended and Restated Credit Agreement, dated as of April 8, 2020, among Six Flags Entertainment Corporation, Six Flags Operations Inc., Six Flags Theme Parks Inc., the other subsidiary guarantors party thereto, Wells Fargo Bank, National Association, as administrative agent, and the revolving credit lenders party thereto

99.1

Press Release of Six Flags Entertainment Corporation, dated April 8, 2020

104

Cover Page Interactive Data File (cover page XBRL tags are embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

SIX FLAGS ENTERTAINMENT CORPORATION

 

 

 

 

 

By:

/s/ Laura W. Doerre

 

 

Name:

Laura W. Doerre

 

 

Title:

Executive Vice President and General Counsel

Date: April 8, 2020

 

Exhibit 10.1

FIRST INCREMENTAL AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS FIRST INCREMENTAL AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Incremental Amendment”) dated as of April 8, 2020, is by and among SIX FLAGS ENTERTAINMENT CORPORATION, a Delaware corporation (the “Parent”), SIX FLAGS OPERATIONS INC., a Delaware corporation (“Holdings”), SIX FLAGS THEME PARKS INC., a Delaware corporation (the “Borrower”), the Subsidiary Guarantors listed on the signature pages hereof, WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the lenders from time to time party to the Credit Agreement referred to below (the “Lenders”), the Incremental Revolving Lenders (as defined below) and the other Lenders party hereto.

R E C I T A L S

A.        The Borrower, Parent, Holdings, the Lenders, the Administrative Agent and the other agents referred to therein are parties to that certain Second Amended and Restated Credit Agreement dated as of April 17, 2019, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement, dated as of October 18, 2019, and as amended by that certain Replacement Revolving Facility Amendment to Second Amended and Restated Credit Agreement, dated as of the date hereof (as further amended, restated, amended and restated or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”, and the Existing Credit Agreement as amended by this Incremental Amendment, the “Credit Agreement”), pursuant to which the Lenders have made certain financial accommodations (subject to the terms and conditions thereof) to the Borrower.

B.         The Borrower has requested and the lenders identified on Schedule A hereto (the “Incremental Revolving Lenders”) have agreed to provide incremental Series B Replacement Revolving Commitments in the aggregate amount of $131,000,000 (the “Incremental Revolving Credit Commitments”; the Loans made pursuant thereto, the “Incremental Revolving Credit Loans”) in accordance with Section 3.3 of the Credit Agreement.

C.         Pursuant to Section 3.3(c) of the Existing Credit Agreement, the Borrower, the Administrative Agent and the Incremental Revolving Lenders desire to amend the Existing Credit Agreement on the terms as set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.        Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement.  Unless otherwise indicated, all article, schedule, exhibit and section references in this Incremental Amendment refer to articles, schedules, exhibits and sections of the Credit Agreement.

 

 

 

 

Section 2.        Amendments to Existing Credit Agreement. Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 4 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Incremental Amendment, the Administrative Agent and the Incremental Revolving Lenders hereby consent to the following amendments to the Existing Credit Agreement:

2.1       Amendments to Section 1.1 (Defined Terms).

(a)        The definition of “Agreement” is hereby amended by replacing the words “and the Replacement Amendment” with “, the Replacement Amendment and the First Incremental Amendment” before the period at the end thereof.

(b)        The following definitions are hereby added to Section 1.1 of the Credit Agreement where alphabetically appropriate:

First Incremental Amendment”:  the First Incremental Amendment to Second Amended and Restated Credit Agreement, dated as of April 8, 2020, by and among Holdings, Parent, the Borrower, the Subsidiary Guarantors party thereto, the Administrative Agent and the Incremental Revolving Lenders party thereto.

Section 3.        Incremental Revolving Facility.

3.1       Incremental Revolving Credit Commitments.

(a)        Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 4 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Incremental Amendment, each Incremental Revolving Lender hereby agrees to provide its respective Incremental Revolving Credit Commitments to the Borrower in a principal amount not to exceed the amount set forth opposite such Incremental Revolving Lender’s name in Schedule A attached hereto.  The Administrative Agent has notified each Incremental Revolving Lender of its allocated Incremental Revolving Credit Commitment, and each Incremental Revolving Lender is a signatory to this Incremental Amendment.

(b)        Class of Revolving Credit Loans and Agreements of the Incremental Revolving Lenders.  The Incremental Revolving Credit Commitments shall be in the form of an increase to the Series B Replacement Revolving Commitments under the Existing Credit Agreement immediately prior to the Effective Date (such existing Series B Replacement Revolving Commitments, for the purposes of this Incremental Amendment, herein called the “Existing Revolving Credit Commitments”), and thereafter, the Incremental Revolving Credit Commitments and the Existing Revolving Credit Commitments shall be treated as a single class and a single Facility of Revolving Credit Commitments for all purposes under the Credit Agreement and the other Loan Documents.  As of the Effective Date, after giving effect to the Incremental Revolving Credit Commitments, the aggregate amount of the Total Revolving Credit Commitments (including any Original Revolving Credit Commitments) pursuant to the Credit Agreement shall be $481,000,000.

(c)        Agreements of the Incremental Revolving Lenders.  Each Incremental Revolving Lender agrees that (i) effective on and at all times after the Effective Date, such

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Incremental Revolving Lender will be bound by all obligations of a Lender and a Revolving Credit Lender under the Credit Agreement and (ii) on the Effective Date, (A) each of the Revolving Credit Lenders party to the Existing Credit Agreement immediately prior to the Effective Date that have Series B Replacement Revolving Commitments (the “Existing Revolving Credit Lenders”) shall assign to each of the Incremental Revolving Lenders, and each of the Incremental Revolving Lenders shall purchase from each of the Existing Revolving Credit Lenders, at the principal amount thereof, such interests in the outstanding Revolving Credit Loans and participations in Letters of Credit and Swing Line Loans outstanding on the Effective Date that will result in, after giving effect to all such assignments and purchases, such Revolving Credit Loans and participations in Letters of Credit and Swing Line Loans being held by Existing Revolving Credit Lenders and the Incremental Revolving Lenders ratably in accordance with their Revolving Credit Commitments after giving effect to the addition of the Incremental Revolving Credit Commitments hereby, (B) each Incremental Revolving Credit Commitment shall be deemed, for all purposes, a Revolving Credit Commitment and a Series B Replacement Revolving Commitment and each loan made thereunder shall be deemed, for all purposes, a Revolving Credit Loan and have the same terms as all Revolving Credit Loans made pursuant to the Series B Replacement Revolving Commitments and (C) each Incremental Revolving Lender shall become a Revolving Credit Lender with respect to the Incremental Revolving Credit Commitments and all matters relating thereto.  Each Incremental Revolving Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Incremental Amendment; (ii) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender or agent thereunder and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender and a Revolving Credit Lender.

(d)        Incremental Incurrence Basket.  The Borrower hereby acknowledges that all of the Incremental Revolving Credit Commitments are being incurred under the Incremental Incurrence Basket.

(e)        Use of Proceeds.  The Borrower will use the proceeds of the Incremental Revolving Credit Commitments (i) to finance the working capital needs and general corporate purposes of Parent, Holdings, the Borrower and its Subsidiaries and (ii) to pay fees and expenses in connection with the foregoing and the preparation and negotiation of this Incremental Amendment.

(f)        Credit Agreement Governs.  Except as otherwise stated herein, the terms of the Incremental Revolving Credit Commitments shall be the same as the terms of the Existing Revolving Credit Commitments as set forth in the Credit Agreement.  The Applicable Margin for the Incremental Revolving Credit Loans shall be the same as for the Existing Revolving Credit

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Loans and the Commitment Fee Rate for the Incremental Revolving Credit Commitments shall be the same for the Existing Revolving Credit Commitments.

(g)        Pari Passu; Maturity.  The Incremental Revolving Credit Commitments shall rank pari passu in right of payment and of security with the Existing Revolving Credit Commitments and mature on the same date that the Existing Revolving Credit Commitments mature. For the avoidance of doubt, the Incremental Revolving Credit Commitments shall share in mandatory prepayments of Revolving Credit Loans under Section 5.5 of the Credit Agreement on a pro rata basis with the Existing Revolving Credit Commitments, in voluntary prepayments of Revolving Credit Loans under Section 5.4 of the Credit Agreement on a pro rata basis with the Existing Revolving Credit Commitments and in connection with a voluntary termination or permanent reduction of the Revolving Credit Commitments under Section 5.3 of the Credit Agreement on a pro rata basis with the Existing Revolving Credit Commitments.

(h)        The Lenders party hereto hereby agree that notwithstanding Section 3.2 of the Credit Agreement, the Borrower may deliver a notice of borrowing for Eurocurrency Loans on the date hereof solely with respect to a borrowing of Revolving Credit Loans on the date hereof.

Section 4.        Conditions Precedent.

4.1       Effectiveness.  The amendments set forth in Section 2 of this Incremental Amendment and the obligation of the Incremental Revolving Lenders to provide the Incremental Revolving Credit Commitments hereunder shall not become effective until the date (the “Effective Date”) on which each of the following conditions has been satisfied (or waived in accordance with Section 12.1 of the Credit Agreement):

(a)        Counterparts.  Administrative Agent shall have received executed counterparts of this Incremental Amendment from the Administrative Agent, each of the Loan Parties and each Incremental Revolving Lender.

(b)        Replacement Revolving Facility Amendment. That certain Replacement Revolving Facility Amendment to Second Amended and Restated Credit Agreement, dated as of the date hereof, shall have closed and be effective prior to the effectiveness of this Incremental Amendment.

(c)        Notes.  The Administrative Agent shall have received, for the account of each Incremental Revolving Lender, if requested, at least two Business Days in advance of the Effective Date, Notes conforming to the requirements set forth in the Credit Agreement and executed and delivered by a duly authorized officer of the Borrower.

(d)        No Default or Event of Default.  As of the Effective Date after giving effect to this Incremental Amendment, no Default or Event of Default shall have occurred and be continuing.

(e)        Representations and Warranties.  Each of the Loan Parties does hereby represent and warrant to the Incremental Revolving Lenders that, as of the Effective Date after giving effect to this Incremental Amendment all of the representations and warranties of each Loan Party contained in the Credit Agreement or the other Loan Documents are true and correct in all material respects on and as of the Effective Date; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided,  further that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall

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be true and correct (after giving effect to any qualification therein) in all respects on and as of the Effective Date or such earlier date;

(f)        Fees.  Subject to the terms and conditions of Section 12.5 of the Credit Agreement, the Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, or substantially simultaneously with the effectiveness of this Incremental Amendment, including to the extent invoiced at least one Business Day prior thereto, reimbursement or payment of all out of pocket expenses required to be reimbursed or paid to the Administrative Agent by the Borrower under the Credit Agreement.

(g)        Lien Searches.  The Administrative Agent shall have received the results of recent Uniform Commercial Code and other lien searches in each relevant domestic jurisdiction with respect to all Property of the Loan Parties (except that with respect to the Real Property, such lien searches shall be limited to the Mortgaged Properties), and such search shall reveal no Liens on any of the Property of the Loan Parties, except for Permitted Liens.

(h)        The U.S.A. PATRIOT Act.  No later than three Business Days prior to the Effective Date, to the extent requested in writing by the Administrative Agent at least five Business Days prior to the Effective Date, the Administrative Agent shall have received the documentation and other information as required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the U.S.A. PATRIOT Act (including, without limitation, a Beneficial Ownership Certification in relation to the Borrower).

(i)         Documentary Conditions.      The Administrative Agent shall have received each of the following, dated as of the Effective Date:

(i) (A) copies of resolutions of the board of directors of the Borrower approving and authorizing the execution, delivery and performance of this Incremental Amendment, certified as of the Effective Date by a Responsible Officer of the Borrower as being in full force and effect without modification or amendment, (B) good standing certificates for each Loan Party, in each case, from the jurisdiction in which they are organized, (C) a certificate of a Responsible Officer, the secretary or the assistant secretary of the Borrower with appropriate insertions and attachments and (D) a solvency certificate from the chief financial officer of Parent (after giving effect to the establishment of the Incremental Revolving Credit Commitments) substantially in the form of Exhibit D to the Credit Agreement;

(ii) a certificate of the Responsible Officer of the Borrower certifying that the Borrower, on a Pro Forma Basis after giving effect to this Incremental Amendment and the transactions contemplated hereby (and assuming that the Incremental Revolving Credit Commitments established hereby are fully funded), is in compliance with (x) the Senior Secured Leverage Ratio as set forth in clause (iii) of the definition of “Incremental Amount” in Section 1.1 of the Existing Credit Agreement and (y) the covenant set forth in Section 9.1 of the Credit Agreement, as of the latest Measurement Period; and

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(iii) the signed legal opinion of Kirkland & Ellis LLP, special counsel to the Borrower, addressed to the Administrative Agent and each Incremental Revolving Lender, in form and substance reasonably satisfactory to the Administrative Agent, shall cover such other matters incident to the transactions contemplated by this Incremental Amendment as the Administrative Agent may reasonably require.

Section 5.        Post-Closing Obligations.  Within 90 days after the Effective Date (or such longer period as the Administrative Agent may reasonably agree), Administrative Agent and the applicable Loan Parties shall have entered into such amendments to the Security Documents (including modifications to the Mortgages) and received such title related documentation, in each case as may be reasonably requested by the Administrative Agent in connection with the Incremental Revolving Credit Commitments and the Borrower shall have delivered such other documents and certificates in connection therewith as may be reasonably requested by the Administrative Agent, in each case as are necessary or advisable to maintain in favor of the Administrative Agent, for the benefit of the Lenders, Liens on the Collateral that are duly perfected (subject to Permitted Liens) in accordance with the requirements of, or the obligations of the Loan Parties under, the Credit Agreement, the other Loan Documents and applicable Law.

Section 6.        Representations and Warranties.  To induce the Administrative Agent and each Incremental Revolving Lender party hereto to enter into this Incremental Amendment, each of the Loan Parties represents and warrants to the Administrative Agent and each Incremental Revolving Lender party hereto on and as of the Effective Date that:

(a)        all of the representations and warranties of each Loan Party contained in the Credit Agreement or the other Loan Documents are true and correct in all material respects on and as of the Effective Date; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided,  further that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on and as of the Effective Date or such earlier date; and

(b)        no Default or Event of Default exists as of the Effective Date or would result from this Incremental Amendment and the transactions contemplated hereby.

Section 7.        Reaffirmation of Guaranty.  Each Guarantor reaffirms its guarantee of the Obligations (as defined in the Guarantee and Collateral Agreement) under the terms and conditions of the Guarantee and Collateral Agreement and agrees that such guarantee remains in full force and effect and is hereby ratified, reaffirmed and confirmed.  Each Guarantor hereby confirms that it consents to the terms of this Incremental Amendment, including, without limitation, the extension of additional credit to the Borrower in the form of the Incremental Revolving Credit Commitments in an aggregate principal amount of $131,000,000, which is in addition to the obligations owed by the Loan Parties under the Credit Agreement immediately prior to the Effective Date and which constitutes “Obligations” of such Guarantor under the Guarantee and Collateral Agreement.  Each Guarantor hereby (i) confirms that each Loan Document to which it is a party or is otherwise bound will continue to guarantee to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Obligations,

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including without limitation the payment and performance of all such applicable Obligations that are joint and several obligations of each Guarantor now or hereafter existing; (ii) acknowledges and agrees that the Guarantee and Collateral Agreement and each of the other Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of the Incremental Amendment; and (iii) acknowledges, agrees and warrants for the benefit of the Administrative Agent and each Secured Party that there are no rights of set-off or counterclaim, nor any defenses of any kind, whether legal, equitable or otherwise, that would enable such Guarantor to avoid or delay timely performance of its obligations under the Loan Documents (except to the extent such obligations constitute Excluded Swap Obligations (as defined in the Guarantee and Collateral Agreement) with respect to such Guarantor).

Section 8.        Reaffirmation of Security Agreement.

(a)        Each Loan Party hereby acknowledges that it has reviewed and consents to the terms and conditions of this Incremental Amendment and the transactions contemplated hereby, including, without limitation, the extension of credit in the form of the Incremental Revolving Credit Commitments in an aggregate principal amount of $131,000,000.  In addition, each Loan Party reaffirms the security interests previously granted by such Loan Party under the terms and conditions of the Guarantee and Collateral Agreement to secure the Obligations and agrees that such security interests remain in full force and effect and are hereby ratified, reaffirmed and confirmed.  Each Loan Party hereby confirms that the security interests granted by such Loan Party under the terms and conditions of the Guarantee and Collateral Agreement secures the Incremental Revolving Credit Commitments as part of the Obligations.  Each Loan Party hereby (i) confirms that each Loan Document to which it is a party or is otherwise bound and all Collateral (as defined in the Guarantee and Collateral Agreement) encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Obligations, as the case may be, including without limitation the payment and performance of all such applicable Obligations that are joint and several obligations of each Loan Party now or hereafter existing, (ii) confirms its respective prior grant to the Administrative Agent for the benefit of the Secured Parties of the security interest in and continuing Lien on all of such Loan Party’s right, title and interest in, to and under all Collateral (as defined in the Guarantee and Collateral Agreement), whether now owned or existing or hereafter acquired or arising and wherever located, as collateral security for the prompt and complete payment and performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of all applicable Obligations (including all such Obligations as amended, reaffirmed and/or increased pursuant to this Incremental Amendment), subject to the terms contained in the applicable Loan Documents, and (iii) confirms its respective guarantees, prior pledges, prior grants of security interests and other obligations, as applicable, under and subject to the terms of each of the Loan Documents to which it is a party.

(b)        Each Loan Party acknowledges and agrees that each of the Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Incremental Amendment.

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Section 9.        Reference to and Effect on the Credit Agreement and the Loan Documents.

9.1       Incremental Amendment.      This Incremental Amendment constitutes (i) the written notice required to be delivered by the Borrower to the Administrative Agent under Section 3.3(a) of the Existing Credit Agreement, and (ii) an “Incremental Amendment” for all purposes of the Credit Agreement and the other Loan Documents.

9.2       Loan Document.

(a)        This Incremental Amendment is a “Loan Document” as defined and described in the Existing Credit Agreement and all of the terms and provisions of the Loan Documents relating to other Loan Documents shall apply hereto.  On and after the Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended or otherwise modified by this Incremental Amendment.

(b)        On and after the Effective Date, (i) the Incremental Revolving Credit Commitments shall constitute “Commitments” and “Revolving Credit Commitments”, (ii) the Incremental Revolving Credit Loans are “Revolving Credit Loans” and “Loans” and (iii) each Incremental Revolving Lender shall be a “Lender”, a “Revolving Credit Lender” and an “Incremental Revolving Lender”, as each term is defined in the Credit Agreement, in each case, for all purposes under the Credit Agreement and the other Loan Documents.

9.3       No Waiver.  The execution, delivery and effectiveness of this Incremental Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

9.4       No Novation.  This Incremental Amendment shall not constitute a novation of the Existing Credit Agreement or of any other Loan Document.

Section 10.      Miscellaneous.

10.1     Confirmation.  The provisions of the Loan Documents, as amended by this Incremental Amendment, shall remain in full force and effect in accordance with their terms following the effectiveness of this Incremental Amendment.

10.2     Ratification and Affirmation.  Each of the undersigned does hereby adopt, ratify, and confirm the Existing Credit Agreement and the other Loan Documents, as amended hereby, and its obligations thereunder.  The Borrower hereby acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein.

10.3     Amendment, Modification and Waiver.  This Incremental Amendment may not be amended, modified or waived except pursuant to a writing signed by each of the parties hereto.

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10.4     Counterparts.  This Incremental Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Incremental Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.  The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Incremental Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

10.5     NO ORAL AGREEMENT.  THIS INCREMENTAL AMENDMENT, THE EXISTING CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

10.6     GOVERNING LAW.  THIS INCREMENTAL AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

10.7     Severability.  Any provision of this Incremental Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

10.8     Headings. The headings of this Incremental Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

[signature pages follow]

 

 

9

 

IN WITNESS WHEREOF, the parties hereto have caused this Incremental Amendment to be duly executed as of the date first written above.

 

 

 

 

 

 

 

 

SIX FLAGS ENTERTAINMENT

 

CORPORATION,

 

as Parent

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

 

 

SIX FLAGS OPERATIONS INC.,

 

as Holdings

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

 

 

SIX FLAGS THEME PARKS INC.,

 

as Borrower

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

 

FIESTA TEXAS, INC.

 

FUNTIME, INC.

 

FUNTIME PARKS, INC.

 

GREAT AMERICA LLC

 

GREAT ESCAPE HOLDING INC.

 

HURRICANE HARBOR GP LLC

 

HURRICANE HARBOR LP LLC

 

MAGIC MOUNTAIN LLC

 

PARK MANAGEMENT CORP.

 

PREMIER INTERNATIONAL HOLDINGS INC.

 

PREMIER PARKS HOLDINGS INC.

 

SIX FLAGS AMERICA INC.

 

RIVERSIDE PARK ENTERPRISES, INC.

 

SIX FLAGS AMERICA PROPERTY

 

CORPORATION

 

SIX FLAGS GREAT ADVENTURE LLC

 

SIX FLAGS INTERNATIONAL

 

DEVELOPMENT CO.

 

SIX FLAGS SERVICES, INC.

 

SIX FLAGS SERVICES OF ILLINOIS, INC.

 

SIX FLAGS ST. LOUIS LLC

 

SOUTH STREET HOLDINGS LLC

 

STUART AMUSEMENT COMPANY

 

SF GREAT AMERICA HOLDING LLC

 

SIX FLAGS CONCORD LLC

 

SIX FLAGS DARIEN LLC

 

SIX FLAGS DARIEN SEASONAL LLC

 

SIX FLAGS SPLASHTOWN LLC

 

SIX FLAGS FRONTIER LLC

 

SIX FLAGS WW BAY LLC

 

SIX FLAGS PHOENIX LLC

 

HWP DEVELOPMENT HOLDINGS LLC

 

SIX FLAGS MW LLC

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

 

 

 

 

 

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

 

HURRICANE HARBOR LP

 

 

 

By:

Hurricane Harbor GP LLC,

 

 

its General Partner

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

 

 

SIX FLAGS AMERICA LP

 

 

 

By:

Funtime, Inc.,

 

 

its General Partner

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

 

 

SIX FLAGS GREAT ESCAPE L.P.

 

GREAT ESCAPE THEME PARK L.P.

 

GREAT ESCAPE RIDES L.P.

 

 

 

By:

Great Escape Holding Inc.,

 

 

their General Partner

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

 

 

HWP DEVELOPMENT LLC

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

 

WELLS FARGO BANK, NATIONAL

 

ASSOCIATION, as Administrative Agent, an

 

Issuing Bank, the Swing Line Lender and an

 

Incremental Revolving Lender

 

 

By:

/s/ Kyle R. Holtz

 

Name:

Kyle R. Holtz

 

Title:

Director

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

 

BANK OF AMERICA, N.A.,

 

as an Incremental Revolving Lender

 

 

 

By:

/s/ Jonathan Tristan

 

Name:

Jonathan Tristan

 

Title:

Vice President

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

GOLDMAN SACHS BANK USA,

 

as an Incremental Revolving Lender

 

 

 

By:

/s/ Thomas M Manning

 

Name:

Thomas M Manning

 

Title:

Authorized Signatory

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

JPMORGAN CHASE BANK, N.A.,

 

as an Incremental Revolving Lender

 

 

 

By:

/s/ Matthew Cheung

 

Name:

Matthew Cheung

 

Title:

Vice President

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

BBVA USA,

 

as an Incremental Revolving Lender

 

 

 

By:

/s/ Jay S. Tweed

 

Name:

Jay S. Tweed

 

Title:

SVP

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

 

 

 

 

 

 

 

Agreed and acknowledged:

 

 

 

BARCLAYS BANK PLC,

 

as a Lender

 

 

 

By:

/s/ Martin Corrigan

 

Name:

Martin Corrigan

 

Title:

Vice President

 

 

[Signature Page to First Incremental Amendment to Second Amended and Restated Credit Agreement]

 

 

Schedule A

Incremental Revolving Credit Commitments

 

 

 

Incremental Revolving Lender

Incremental Revolving Credit Commitment

Wells Fargo Bank, National Association

$
34,250,000

Bank of America, N.A.

$
28,500,000

Goldman Sachs Bank USA

$
22,750,000

JPMorgan Chase Bank, N.A.

$
22,750,000

BBVA USA

$
22,750,000

Total

$
131,000,000

 

 

 

Exhibit 10.2

REPLACEMENT REVOLVING FACILITY AMENDMENT TO

SECOND AMENDED AND RESTATED CREDIT AGREEMENT

THIS REPLACEMENT REVOLVING FACILITY AMENDMENT TO SECOND AMENDED AND RESTATED CREDIT AGREEMENT (this “Replacement Amendment”) dated as of April 8, 2020, is by and among SIX FLAGS ENTERTAINMENT CORPORATION, a Delaware corporation (the “Parent”), SIX FLAGS OPERATIONS INC., a Delaware corporation (“Holdings”), SIX FLAGS THEME PARKS INC., a Delaware corporation (the “Borrower”), the Subsidiary Guarantors listed on the signature pages hereof, WELLS FARGO BANK, NATIONAL ASSOCIATION, as administrative agent (in such capacity, together with its successors in such capacity, the “Administrative Agent”) for the lenders from time to time party to the Credit Agreement referred to below (the “Lenders”), the Replacement Revolving Lenders (as defined below) and the other Lenders party hereto.

R E C I T A L S

A.        The Borrower, Parent, Holdings, the Lenders, the Administrative Agent and the other agents referred to therein are parties to that certain Second Amended and Restated Credit Agreement dated as of April 17, 2019, as amended by that certain First Amendment to Second Amended and Restated Credit Agreement, dated as of October 18, 2019 (as further amended, restated, amended and restated or otherwise modified from time to time prior to the date hereof, the “Existing Credit Agreement”, and the Existing Credit Agreement as amended by this Replacement Amendment, the “Credit Agreement”), pursuant to which the Lenders have made certain financial accommodations (subject to the terms and conditions thereof) to the Borrower.

B.         The Borrower has requested and the lenders identified on Schedule A hereto (the “Replacement Revolving Lenders”) have agreed to Refinance their Revolving Credit Commitments under the Existing Credit Agreement with Replacement Revolving Commitments as set forth herein, in accordance with Section 3.4 of the Credit Agreement.

C.         Pursuant to Section 3.4(c) of the Existing Credit Agreement, the Borrower, the Administrative Agent and the Replacement Revolving Lenders desire to amend the Existing Credit Agreement on the terms as set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

Section 1.        Defined Terms.  Each capitalized term used herein but not otherwise defined herein has the meaning given such term in the Credit Agreement.  Unless otherwise indicated, all article, schedule, exhibit and section references in this Replacement Amendment refer to articles, schedules, exhibits and sections of the Credit Agreement.

Section 2.        Amendments to Existing Credit Agreement. Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 4 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Replacement

 

 

 

 

 

 

Amendment, the Administrative Agent and the Replacement Revolving Lenders hereby consent to the following amendments to the Existing Credit Agreement:

2.1       Amendments to Section 1.1 (Defined Terms).

(a)        The definition of “Agreement” is hereby amended by adding the words “and the Replacement Amendment” before the period at the end thereof.

(b)        The definition of “Applicable Margin” is hereby amended by amending and restating clause (b) thereof in its entirety as follows:

(b) (i) in the case of Revolving Credit Loans that are not pursuant to Series B Replacement Revolving Commitments, the corresponding percentages per annum as set forth below based on the Senior Secured Leverage Ratio:

 

 

 

 

Revolving Credit Loans

Pricing Level

Senior Secured Leverage Ratio

Commitment Fee Rate

Eurocurrency Loans

Base Rate Loans

I

Less than 1.25:1.00

0.250%

1.50%

0.50%

II

Greater than or equal to 1.25:1.00, but less than 2.50:1.00

0.300%

1.75%

0.75%

III

Greater than or equal to 2.50:1.00

0.350%

2.00%

1.00%

 

and (ii) in the case of Revolving Credit Loans that are pursuant to Series B Replacement Revolving Commitments, the corresponding percentages per annum as set forth below based on the Senior Secured Leverage Ratio:

 

 

 

 

 

 

 

 

 

Revolving Credit Loans

Pricing Level

Senior Secured Leverage Ratio

Commitment Fee Rate

Eurocurrency Loans

Base Rate Loans

I

Less than 1.25:1.00

0.875%

3.00%

2.00%

II

Greater than or equal to 1.25:1.00, but less than 2.50:1.00

1.000%

3.25%

2.25%

 

2

 

 

 

 

 

 

III

Greater than or equal to 2.50:1.00

1.000%

3.50%

2.50%

 

(c)        The definition of “Applicable Margin” is hereby amended by amending and restating clause (b) of the penultimate paragraph thereof in its entirety as follows:

(b) if the Borrower fails to provide the certificate of a Responsible Officer of Parent as required by Section 8.1(f) for the most recently ended fiscal quarter of the Borrower preceding the applicable Calculation Date, the Applicable Margin from such Calculation Date shall be based on Pricing Level III (in the case of Revolving Credit Loans both pursuant to Original Revolving Credit Commitments and Series B Replacement Revolving Commitments) until such time as an appropriate certificate is provided, at which time the Pricing Level shall be determined by reference to the Senior Secured Leverage Ratio as of the last day of the most recently ended fiscal quarter of the Borrower preceding such Calculation Date.

(d)        The definition of “Eurocurrency Rate” is hereby amended by amending and restating the proviso at the end thereof in its entirety as follows:

provided that, if such rate is below zero, the Eurocurrency Rate (including, without limitation, any Replacement Rate with respect thereto) will be deemed to be zero; provided,  further, that the Eurocurrency Rate with respect to Revolving Credit Loans that are pursuant to Series B Replacement Revolving Commitments shall not be less than 0.75%.

(e)        The following definitions are hereby added to Section 1.1 of the Credit Agreement where alphabetically appropriate:

Replacement Amendment”:  the Replacement Revolving Facility Amendment to Second Amended and Restated Credit Agreement, dated as of April 8, 2020, by and among Holdings, Parent, the Borrower, the Subsidiary Guarantors party thereto, the Administrative Agent and the Replacement Revolving Lenders party thereto.

Series B Replacement Revolving Commitments”:  the Replacement Revolving Commitments established pursuant to the Replacement Amendment.  For the avoidance of doubt, the Series B Replacement Revolving Commitments constitute Revolving Credit Commitments and Commitments for all purposes.

2.2       Amendments to Section 3.3.  Section 3.3 of the Credit Agreement is hereby amended by amending and restating clause (a) and clause (a)(ii) thereof in their entirety as follows:

(a)        The Borrower may, by written notice to the Administrative Agent from time to time prior to the Revolving Facility Termination Date, request an increase in any Revolving Credit Facility in an aggregate amount not to exceed for all Revolving Credit Facilities the Incremental Amount from one or more Revolving Credit Lenders (which may include any existing Lender) willing to provide such increased Revolving Credit Commitments in their own discretion; provided that on a Pro Forma Basis after giving effect to the incurrence of such Revolving Credit Commitments (assuming for purposes of this Section 3.3 that such

3

 

 

increased Revolving Credit Commitments established at such time are fully funded) and the use of proceeds thereof, the Borrower is in compliance with the covenant set forth in Section 9.1, as of the latest Measurement Period; and provided further that;

(ii)       the increased Revolving Credit Commitments shall have the same terms and conditions as the Revolving Credit Commitments then in effect and subject to such increase (other than fees, maturity (which may be no earlier than the Revolving Facility Termination Date for the Original Revolving Credit Commitments) and interest rate margins, which shall be as agreed between the Borrower and those lenders providing the additional Revolving Credit Commitments pursuant to this Section 3.3);

2.3       Amendments to Section 5.5.  Section 5.5 of the Credit Agreement is hereby amended by inserting a new clause (f) thereto as follows, pursuant to clause (d) of the third to last paragraph of Section 12.1 of the Credit Agreement:

(f)        If on any date, the Administrative Agent notifies the Borrower that the sum of (x) the L/C Obligations, plus (y) the aggregate principal amount of Swing Line Loans outstanding at any time plus (z) the aggregate principal amount of Revolving Credit Loans under a Facility then outstanding would exceed the Total Revolving Credit Commitment for such Facility (the “Revolving Credit Exposure”) on such date, the Borrower shall prepay the outstanding principal amount of any such Swing Line Loans and Revolving Credit Loans on such date (and, to the extent after giving effect to such prepayment, the Revolving Credit Exposure still exceeds such Total Revolving Credit Commitment, deposit cash collateral in an account with the Administrative Agent (or an account in the name of the Administrative Agent with another institution designated by the Administrative Agent)) such that the aggregate amount so prepaid by the Borrower and cash collateral so deposited in an account with the Administrative Agent (or an account in the name of the Administrative Agent with another institution designated by the Administrative Agent) shall be sufficient to reduce the Revolving Credit Exposure to an amount not to exceed such Total Revolving Credit Commitment on such date together with any interest accrued to the date of such prepayment on the aggregate principal amount of Revolving Credit Loans prepaid.  The Administrative Agent shall give prompt notice of any prepayment required under this Section 5.5(f) to the Borrower and the Lenders.

Section 3.        Replacement Revolving Facility.

3.1       Replacement Revolving Commitments.

(a)        Subject to the satisfaction or waiver in writing of each condition precedent set forth in Section 4 hereof, and in reliance on the representations, warranties, covenants and agreements contained in this Replacement Amendment, each Replacement Revolving Lender hereby agrees (x) to provide its respective Replacement Revolving Commitment to the Borrower in a principal amount not to exceed the amount set forth opposite such Replacement Revolving Lender’s name in Schedule A attached hereto and (y) that on the Replacement Revolving Credit Effective Date all of its Revolving Credit Commitment under the Existing Credit Agreement shall be Refinanced and replaced in their entirety with its respective Replacement Revolving Commitment hereunder.  The Administrative Agent has notified each Replacement Revolving Lender of its allocated Replacement Revolving Commitment, and each Replacement Revolving

4

 

 

Lender is a signatory to this Replacement Amendment.  For the avoidance of doubt, the Revolving Credit Commitment of any Lender under the Existing Credit Agreement that is not signatory to this Replacement Amendment (such Revolving Credit Commitments, the “Remaining Commitments”) shall not be Refinanced or replaced by a Replacement Revolving Commitment hereunder, shall be unchanged in all respects by this Replacement Amendment and is not a Series B Replacement Revolving Commitment.

(b)        Class of Revolving Credit Loans.  The Replacement Revolving Commitments hereunder will constitute a new class of Revolving Credit Commitments and shall be a separate “Facility” for purposes of the Credit Agreement and the other Loan Documents with the terms set forth herein and in the Credit Agreement and will constitute “Revolving Credit Commitments” and “Commitments”.  The amendments pursuant to this Replacement Amendment constitute a “Replacement Revolving Facility Amendment” under the Credit Agreement and with effect from the Replacement Revolving Credit Effective Date, any Loans made pursuant to the Replacement Revolving Commitments shall be “Revolving Credit Loans”.  For the avoidance of doubt, from and after the Replacement Revolving Credit Effective Date, there shall continue to be a single Swing Line Commitment and L/C Commitment, shared ratably by Lenders with Remaining Commitments and Lenders with Replacement Revolving Commitments in accordance with their Commitments.

(c)        Agreements of the Replacement Revolving Lenders.  Each Replacement Revolving Lender agrees that (i) effective on and at all times after the Replacement Revolving Credit Effective Date, such Replacement Revolving Lender will be bound by all obligations of a Lender and a Revolving Credit Lender under the Credit Agreement and (ii) on the Replacement Revolving Credit Effective Date, (A) for the avoidance of doubt, immediately after the effectiveness thereof, the allocation of outstanding Revolving Credit Loans, L/C Obligations and Swing Line Exposure as of the Replacement Revolving Credit Effective Date shall be unchanged from the allocations under the Original Revolving Credit Commitments immediately prior to giving effect to the Replacement Revolving Commitments hereunder, (B) each Replacement Revolving Commitment shall be deemed, for all purposes, a Revolving Credit Commitment and each loan made thereunder shall be deemed, for all purposes, a Revolving Credit Loan and other than as provided herein have the same terms as all other Revolving Credit Loans and (C) each Replacement Revolving Lender shall become a Revolving Credit Lender with respect to the Replacement Revolving Commitments and all matters relating thereto.  Each Replacement Revolving Lender (i) confirms that it has received a copy of the Credit Agreement and the other Loan Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Replacement Amendment; (ii) agrees that it will, independently and without reliance upon the Administrative Agent or any other Lender or agent thereunder and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and authorizes the Administrative Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Loan Documents as are delegated to the Administrative Agent by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender and a Revolving Credit Lender.  To the extent any loss or expense is incurred as

5

 

 

a consequence of the transactions contemplated hereby, each of the Revolving Credit Lenders party hereto hereby waive the benefits of Section 5.14 of the Credit Agreement with respect to its Revolving Credit Loans.

(d)        Use of Proceeds.  The Borrower will use the proceeds of the Replacement Revolving Commitments (i) to refinance and replace each Replacement Revolving Lender’s existing Revolving Credit Commitments, (ii) to finance the working capital needs and general corporate purposes of Parent, Holdings, the Borrower and its Subsidiaries and (iii) to pay fees and expenses in connection with the foregoing and the preparation and negotiation of this Replacement Amendment.

(e)        Credit Agreement Governs.  Except as otherwise stated herein (which modifications are permitted by Section 3.4 of the Credit Agreement), the terms of the Replacement Revolving Commitments shall be the same as the terms of the Original Revolving Credit Commitments as set forth in the Credit Agreement.

(f)        Pari Passu; Maturity.  The Replacement Revolving Commitments shall rank pari passu in right of payment and of security with the Original Revolving Credit Commitments and mature on the same date that the Original Revolving Credit Commitments mature. For the avoidance of doubt, the Replacement Revolving Commitments shall share in mandatory prepayments of Revolving Credit Loans under Section 5.5 of the Credit Agreement on a pro rata basis with the Original Revolving Credit Commitments and in voluntary prepayments of Revolving Credit Loans under Section 5.4 of the Credit Agreement on a pro rata basis with the Original Revolving Credit Commitments, except for mandatory prepayments in connection with the termination or reduction of the Revolving Credit Commitments of any Facility, which termination or reduction of Revolving Credit Commitments may be made on a non-pro rata basis among Facilities in accordance with Section 5.3 of the Credit Agreement.

Section 4.        Conditions Precedent.

4.1       Effectiveness.  The amendments set forth in Section 2 of this Replacement Amendment and the obligation of the Replacement Revolving Lenders to provide the Replacement Revolving Commitments hereunder shall not become effective until the date (the “Replacement Revolving Credit Effective Date”) on which each of the following conditions has been satisfied (or waived in accordance with Section 12.1 of the Credit Agreement):

(a)        Counterparts.  Administrative Agent shall have received executed counterparts of this Replacement Amendment from the Administrative Agent, each of the Loan Parties and each Replacement Revolving Lender.

(b)        The Administrative Agent shall have received a letter agreement from the Borrower in form and substance reasonably satisfactory to the Administrative Agent pursuant to which the Borrower shall commit to make each borrowing and each repayment of Revolving Credit Loans on a pro rata basis among the Original Revolving Credit Facility and the Replacement Revolving Facility established hereby, except for mandatory prepayments in connection with the termination or reduction of the Revolving Credit Commitments of any

6

 

 

Facility, which termination or reduction may be made, at the option of the Borrower, on a non-pro rata basis among Facilities in accordance with Section 5.3 of the Credit Agreement.

(c)        Notes.  The Administrative Agent shall have received, for the account of each Replacement Revolving Lender, if requested, at least two Business Days in advance of the Replacement Revolving Credit Effective Date, Notes conforming to the requirements set forth in the Credit Agreement and executed and delivered by a duly authorized officer of the Borrower.

(d)        No Default or Event of Default.  As of the Replacement Revolving Credit Effective Date after giving effect to this Replacement Amendment, no Default or Event of Default shall have occurred and be continuing.

(e)        Representations and Warranties.  Each of the Loan Parties does hereby represent and warrant to the Replacement Revolving Lenders that, as of the Replacement Revolving Credit Effective Date after giving effect to this Revolving Amendment all of the representations and warranties of each Loan Party contained in the Credit Agreement or the other Loan Documents are true and correct in all material respects on and as of the Replacement Revolving Credit Effective Date; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided,  further that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on and as of the Replacement Revolving Credit Effective Date or such earlier date;

(f)        Fees.  Subject to the terms and conditions of Section 12.5 of the Credit Agreement, the Administrative Agent shall have received all fees and other amounts due and payable on or prior to the Replacement Revolving Credit Effective Date, or substantially simultaneously with the effectiveness of this Replacement Amendment, including to the extent invoiced at least one Business Day prior thereto, reimbursement or payment of all out of pocket expenses required to be reimbursed or paid to the Administrative Agent by the Borrower under the Credit Agreement.

(g)        Lien Searches.  The Administrative Agent shall have received the results of recent Uniform Commercial Code and other lien searches in each relevant domestic jurisdiction with respect to all Property of the Loan Parties (except that with respect to the Real Property, such lien searches shall be limited to the Mortgaged Properties), and such search shall reveal no Liens on any of the Property of the Loan Parties, except for Permitted Liens.

(h)        The U.S.A. PATRIOT Act.  No later than three Business Days prior to the Replacement Revolving Credit Effective Date, to the extent requested in writing by the Administrative Agent at least five Business Days prior to the Replacement Revolving Credit Effective Date, the Administrative Agent shall have received the documentation and other information as required by bank regulatory authorities under applicable “know your customer” and anti-money laundering rules and regulations, including the U.S.A. PATRIOT Act (including, without limitation, a Beneficial Ownership Certification in relation to the Borrower).

7

 

(i)         Documentary Conditions.      The Administrative Agent shall have received each of the following, dated as of the Replacement Revolving Credit Effective Date:

(i) (A) copies of resolutions of the board of directors of the Borrower approving and authorizing the execution, delivery and performance of this Replacement Amendment, certified as of the Replacement Revolving Credit Effective Date by a Responsible Officer of the Borrower as being in full force and effect without modification or amendment, (B) good standing certificates for each Loan Party, in each case, from the jurisdiction in which they are organized, (C) a certificate of a Responsible Officer, the secretary or the assistant secretary of the Borrower with appropriate insertions and attachments and (D) a solvency certificate from the chief financial officer of Parent (after giving effect to the establishment of the Replacement Revolving Commitments) substantially in the form of Exhibit D to the Credit Agreement;

(ii) the signed legal opinion of Kirkland & Ellis LLP, special counsel to Borrower, addressed to the Administrative Agent and each Replacement Revolving Lender, in form and substance reasonably satisfactory to the Administrative Agent, shall cover such other matters incident to the transactions contemplated by this Replacement Amendment as the Administrative Agent may reasonably require.

Section 5.        Representations and Warranties.  To induce the Administrative Agent and each Replacement Revolving Lender party hereto to enter into this Replacement Amendment, each of the Loan Parties represents and warrants to the Administrative Agent and each Replacement Revolving Lender party hereto on and as of the Replacement Revolving Credit Effective Date that:

(a)        all of the representations and warranties of each Loan Party contained in the Credit Agreement or the other Loan Documents are true and correct in all material respects on and as of the Replacement Revolving Credit Effective Date; provided that, to the extent that such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date; provided,  further that any representation and warranty that is qualified as to “materiality,” “Material Adverse Effect” or similar language shall be true and correct (after giving effect to any qualification therein) in all respects on and as of the Replacement Revolving Credit Effective Date or such earlier date; and

(b)        no Default or Event of Default exists as of the Replacement Revolving Credit Effective Date or would result from this Replacement Amendment and the transactions contemplated hereby.

Section 6.        Reaffirmation of Guaranty.  Each Guarantor reaffirms its guarantee of the Obligations (as defined in the Guarantee and Collateral Agreement) under the terms and conditions of the Guarantee and Collateral Agreement and agrees that such guarantee remains in full force and effect and is hereby ratified, reaffirmed and confirmed.  Each Guarantor hereby confirms that it consents to the terms of this Replacement Amendment and that the extension of credit to the Borrower pursuant to the Replacement Revolving Commitments shall constitute “Obligations” of such Guarantor under the Guarantee and Collateral Agreement.  Each Guarantor hereby (i) confirms that each Loan Document to which it is a party or is otherwise

8

 

 

bound will continue to guarantee to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Obligations, including without limitation the payment and performance of all such applicable Obligations that are joint and several obligations of each Guarantor now or hereafter existing; (ii) acknowledges and agrees that the Guarantee and Collateral Agreement and each of the other Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of the Replacement Amendment; and (iii) acknowledges, agrees and warrants for the benefit of the Administrative Agent and each Secured Party that there are no rights of set-off or counterclaim, nor any defenses of any kind, whether legal, equitable or otherwise, that would enable such Guarantor to avoid or delay timely performance of its obligations under the Loan Documents (except to the extent such obligations constitute Excluded Swap Obligations (as defined in the Guarantee and Collateral Agreement) with respect to such Guarantor).

Section 7.        Reaffirmation of Security Agreement.

(a)        Each Loan Party hereby acknowledges that it has reviewed and consents to the terms and conditions of this Replacement Amendment and the transactions contemplated hereby.  In addition, each Loan Party reaffirms the security interests previously granted by such Loan Party under the terms and conditions of the Guarantee and Collateral Agreement to secure the Obligations and agrees that such security interests remain in full force and effect and are hereby ratified, reaffirmed and confirmed.  Each Loan Party hereby confirms that the security interests granted by such Loan Party under the terms and conditions of the Guarantee and Collateral Agreement secures the Replacement Revolving Commitments as part of the Obligations.  Each Loan Party hereby (i) confirms that each Loan Document to which it is a party or is otherwise bound and all Collateral (as defined in the Guarantee and Collateral Agreement) encumbered thereby will continue to guarantee or secure, as the case may be, to the fullest extent possible in accordance with the Loan Documents, the payment and performance of the Obligations, as the case may be, including without limitation the payment and performance of all such applicable Obligations that are joint and several obligations of each Loan Party now or hereafter existing, (ii) confirms its respective prior grant to the Administrative Agent for the benefit of the Secured Parties of the security interest in and continuing Lien on all of such Loan Party’s right, title and interest in, to and under all Collateral (as defined in the Guarantee and Collateral Agreement), whether now owned or existing or hereafter acquired or arising and wherever located, as collateral security for the prompt and complete payment and performance in full when due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise, of all applicable Obligations (including all such Obligations as amended, reaffirmed and/or increased pursuant to this Replacement Amendment), subject to the terms contained in the applicable Loan Documents, and (iii) confirms its respective guarantees, prior pledges, prior grants of security interests and other obligations, as applicable, under and subject to the terms of each of the Loan Documents to which it is a party.

(b)        Each Loan Party acknowledges and agrees that each of the Loan Documents to which it is a party or otherwise bound shall continue in full force and effect and that all of its obligations thereunder shall be valid and enforceable and shall not be impaired or limited by the execution or effectiveness of this Replacement Amendment.

9

 

 

Section 8.        Reference to and Effect on the Credit Agreement and the Loan Documents.

8.1       Replacement Amendment.     This Replacement Amendment constitutes (i) the written notice required to be delivered by the Borrower to the Administrative Agent under Section 3.4(a) of the Existing Credit Agreement, and (ii) a “Replacement Revolving Facility Amendment” for all purposes of the Credit Agreement and the other Loan Documents.

8.2       Loan Document.

(a)        This Replacement Amendment is a “Loan Document” as defined and described in the Existing Credit Agreement and all of the terms and provisions of the Loan Documents relating to other Loan Documents shall apply hereto.  On and after the Replacement Revolving Credit Effective Date, each reference in the Credit Agreement to “this Agreement”, “hereunder”, “hereof”, “herein” or words of like import referring to the Credit Agreement, and each reference in the other Loan Documents to the “Credit Agreement”, “thereunder”, “thereof” or words of like import referring to the Credit Agreement shall mean and be a reference to the Credit Agreement as amended or otherwise modified by this Replacement Amendment.

(b)        On and after the Replacement Revolving Credit Effective Date, (i) the Replacement Revolving Commitments shall constitute “Commitments” and “Revolving Credit Commitments”, (ii) any Loans pursuant to the Replacement Revolving Commitments are “Revolving Credit Loans” and “Loans” and (iii) each Replacement Revolving Lender shall be a “Lender”, a “Revolving Credit Lender” and a “Replacement Revolving Lender”, as each term is defined in the Credit Agreement, in each case, for all purposes under the Credit Agreement and the other Loan Documents.

8.3       No Waiver.  The execution, delivery and effectiveness of this Replacement Amendment shall not, except as expressly provided herein, operate as a waiver of any right, power or remedy of any Lender or the Administrative Agent under any of the Loan Documents, nor constitute a waiver of any provision of any of the Loan Documents.

8.4       No Novation.  This Replacement Amendment shall not constitute a novation of the Existing Credit Agreement or of any other Loan Document.

Section 9.        Miscellaneous.

9.1       Confirmation.  The provisions of the Loan Documents, as amended by this Replacement Amendment, shall remain in full force and effect in accordance with their terms following the effectiveness of this Replacement Amendment.

9.2       Ratification and Affirmation.  Each of the undersigned does hereby adopt, ratify, and confirm the Existing Credit Agreement and the other Loan Documents, as amended hereby, and its obligations thereunder.  The Borrower hereby acknowledges, renews and extends its continued liability under, each Loan Document to which it is a party and agrees that each Loan Document to which it is a party remains in full force and effect, except as expressly amended hereby, notwithstanding the amendments contained herein.

10

 

 

9.3       Amendment, Modification and Waiver.  This Replacement Amendment may not be amended, modified or waived except pursuant to a writing signed by each of the parties hereto.

9.4       Counterparts.  This Replacement Amendment may be executed by one or more of the parties hereto in any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument.  Delivery of an executed signature page of this Replacement Amendment by facsimile or other electronic transmission shall be effective as delivery of a manually executed counterpart hereof.  The words “execution,” “execute”, “signed,” “signature,” and words of like import in or related to any document to be signed in connection with this Replacement Amendment and the transactions contemplated hereby shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the Uniform Electronic Transactions Act.

9.5       NO ORAL AGREEMENT.  THIS REPLACEMENT AMENDMENT, THE EXISTING CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND THEREWITH REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR UNWRITTEN ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES.

9.6       GOVERNING LAW.  THIS REPLACEMENT AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

9.7       Severability.  Any provision of this Replacement Amendment that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

9.8       Headings. The headings of this Replacement Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.

9.9       Notice Acknowledgment. The Administrative Agent hereby agrees and acknowledges that it has received the notice from the Borrower contemplated by Section 3.4(a) of the Credit Agreement within the required time period provided in such Section with respect to the Replacement Revolving Commitments contemplated hereunder.

 

 

 

 

 

[signature pages follow]

 

 

 

11

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Replacement Amendment to be duly executed as of the date first written above.

 

 

 

 

 

 

 

SIX FLAGS ENTERTAINMENT

 

 

CORPORATION,

 

 

as Parent

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

 

Name:

Leonard A. Russ

 

 

Title:

Interim Chief Financial Officer

 

 

 

 

 

SIX FLAGS OPERATIONS INC.,

 

 

as Holdings

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

 

Name:

Leonard A. Russ

 

 

Title:

Interim Chief Financial Officer

 

 

 

 

 

SIX FLAGS THEME PARKS INC.,

 

 

as Borrower

 

 

 

 

 

By:

/s/  Leonard A. Russ

 

 

Name:

Leonard A. Russ

 

 

Title:

Interim Chief Financial Officer

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

 

FIESTA TEXAS, INC.

 

FUNTIME, INC.

 

FUNTIME PARKS, INC.

 

GREAT AMERICA LLC

 

GREAT ESCAPE HOLDING INC.

 

HURRICANE HARBOR GP LLC

 

HURRICANE HARBOR LP LLC

 

MAGIC MOUNTAIN LLC

 

PARK MANAGEMENT CORP.

 

PREMIER INTERNATIONAL HOLDINGS INC.

 

PREMIER PARKS HOLDINGS INC.

 

SIX FLAGS AMERICA INC.

 

RIVERSIDE PARK ENTERPRISES, INC.

 

SIX FLAGS AMERICA PROPERTY

 

CORPORATION

 

SIX FLAGS GREAT ADVENTURE LLC

 

SIX FLAGS INTERNATIONAL

 

DEVELOPMENT CO.

 

SIX FLAGS SERVICES, INC.

 

SIX FLAGS SERVICES OF ILLINOIS, INC.

 

SIX FLAGS ST. LOUIS LLC

 

SOUTH STREET HOLDINGS LLC

 

STUART AMUSEMENT COMPANY

 

SF GREAT AMERICA HOLDING LLC

 

SIX FLAGS CONCORD LLC

 

SIX FLAGS DARIEN LLC

 

SIX FLAGS DARIEN SEASONAL LLC

 

SIX FLAGS SPLASHTOWN LLC

 

SIX FLAGS FRONTIER LLC

 

SIX FLAGS WW BAY LLC

 

SIX FLAGS PHOENIX LLC

 

HWP DEVELOPMENT HOLDINGS LLC

 

SIX FLAGS MW LLC

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

Name:

Leonard A. Russ

 

Title:

Interim Chief Financial Officer

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

 

 

HURRICANE HARBOR LP

 

 

 

 

 

By:

Hurricane Harbor GP LLC,

 

 

 

its General Partner

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

 

Name:

Leonard A. Russ

 

 

Title:

Interim Chief Financial Officer

 

 

 

 

 

SIX FLAGS AMERICA LP

 

 

 

 

 

By:

Funtime, Inc.,

 

 

 

its General Partner

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

 

Name:

Leonard A. Russ

 

 

Title:

Interim Chief Financial Officer

 

 

 

 

 

SIX FLAGS GREAT ESCAPE L.P.

 

 

GREAT ESCAPE THEME PARK L.P.

 

 

GREAT ESCAPE RIDES L.P.

 

 

 

 

 

By:

Great Escape Holding Inc.,

 

 

 

their General Partner

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

 

Name:

Leonard A. Russ

 

 

Title:

Interim Chief Financial Officer

 

 

 

 

 

HWP DEVELOPMENT LLC

 

 

 

 

 

By:

/s/ Leonard A. Russ

 

 

Name:

Leonard A. Russ

 

 

Title:

Interim Chief Financial Officer

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

 

 

 

WELLS FARGO BANK, NATIONAL

 

 

ASSOCIATION, as Administrative Agent, an

 

 

Issuing Bank, the Swing Line Lender and a

 

 

Replacement Revolving Lender

 

 

 

 

 

By:

/s/ Kyle R. Holtz

 

 

 

Name:  Kyle R. Holtz

 

 

 

Title:  Director

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

BANK OF AMERICA, N.A.,

 

as a Replacement Revolving Lender

 

 

 

By:

/s/ Jonathan Tristan

 

Name:

Jonathan Tristan

 

Title:

Vice President

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

GOLDMAN SACHS BANK USA,

 

as a Replacement Revolving Lender

 

 

 

By:

/s/ Thomas M Manning

 

Name:

Thomas M Manning

 

Title:

Authorized Signatory

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

JPMORGAN CHASE BANK, N.A.,

 

as a Replacement Revolving Lender

 

 

 

By:

/s/ Matthew Cheung

 

Name:

Matthew Cheung

 

Title:

Vice President

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

BBVA USA,

 

as a Replacement Revolving Lender

 

 

 

By:

/s/ Jay S. Tweed

 

Name:

Jay S. Tweed

 

Title:

SVP

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

 

 

 

 

 

 

 

Agreed and acknowledged:

 

 

 

BARCLAYS BANK PLC,

 

as a Lender

 

 

 

By:

/s/ Martin Corrigan

 

Name:

Martin Corrigan

 

Title:

Vice President

 

 

 

[Signature Page to Replacement Revolving Facility Amendment]

 

 

Schedule A

Replacement Revolving Commitments

 

 

 

Replacement Revolving Lender

Replacement Revolving Commitment

Wells Fargo Bank, National Association

$
60,000,000

Bank of America, N.A.

$
50,000,000

Goldman Sachs Bank USA

$
40,000,000

JPMorgan Chase Bank, N.A.

$
40,000,000

BBVA USA

$
40,000,000

Total

$
230,000,000

 

 

Exhibit 99.1

 

 

 

 

 

 

mailto:spurtell@sftp.com 

 

 

Contact:

Stephen Purtell

Senior Vice President

Investor Relations and Treasurer

+1-972-595-5180

investors@sftp.com

PICTURE 2

 

 

Six Flags Increases Revolving Credit Facility to $481 Million to

Provide Additional Liquidity and Financial Flexibility

 

Company Provides Business Update; Withdraws Full Year 2020 Financial Guidance;

Suspends Quarterly Dividend and Postpones May 28 Investor Day

 

 

GRAND PRAIRIE, Texas — April 8, 2020  — Six Flags Entertainment Corporation (NYSE: SIX), the world’s largest regional theme park company and the largest operator of waterparks in North America, today announced that certain of the company’s revolving credit lenders agreed to provide an incremental $131 million of revolving credit commitments to its senior secured revolving credit facility, increasing the facility from $350 million to $481 million.1    

“The increase in our revolving credit facility, combined with actions we have taken to reduce operating expenses and capital expenditures, provides us with significant runway to operate in this uncertain environment,” said Mike Spanos, President and CEO. “I am extremely proud of our team members’ commitment to successfully navigate through this challenging period. We are confident that our resilient team and the underlying strength of our business will enable us to emerge from this crisis even stronger, and we remain committed to driving long-term value for our shareholders. Once we reopen our parks, we will redouble our efforts to profitably grow our base business and pay down debt.”

As previously announced, the company suspended operations of its North American parks beginning March 13, 2020 due to the spread of COVID-19. The company expects to keep its parks closed until at least mid-May and to reopen as soon as possible thereafter.

Preliminary First Quarter Financial Results

The company expects total revenue in the first quarter of 2020 to be $25-$30 million lower than the same period in the prior year, with $9 million of the decline associated with the company’s international agreements. Prior to the park closures, the company’s revenue from its North American theme park operations was higher than the prior year period, primarily driven by higher attendance and higher guest spending per capita. A significant portion of the revenue decline will be offset by cost saving measures the company implemented after the suspension of park operations. Prior to the park closures on March 13, the company paid $21 million in dividends and repurchased $51 million of its 4.875% notes due 2024. The company also invested $53 million in capital expenditures in the first quarter.

COVID-19 Response

The safety and well-being of its guests and team members is the company’s highest priority. The company is also focused on managing the health of the business to ensure it can provide the best guest experience when its parks are able to reopen. Since closing its parks in March, the company has  taken the following actions to reduce operating expenses:

·

Eliminated nearly all of its seasonal labor costs, and positioned itself to maintain this low level until its parks reopen.

·

Announced a 25 percent salary reduction for all executives and salaried employees and a 25 percent reduction in scheduled hours for all full-time hourly employees to 30 hours per week, subject to federal and state minimum requirements.

·

Suspended all advertising and marketing costs.

·

Intends to eliminate at least $30-40 million of additional non-labor operating costs in 2020, including the increased investments the company announced in its fourth quarter 2019 earnings release to improve the guest experiences.  

In addition, the company’s board of directors has agreed that no cash retainer fees will be paid in the second quarter of 2020 to any director for service on the Board or any committee of the Board.

To enhance its liquidity, the company is taking proactive steps to address its capital spending for calendar year 2020, including deferring or eliminating at least $40-50 million of discretionary capital projects planned for 2020. In addition, as part of the revolving credit facility increase, the company has agreed to suspend the payment of dividends and the repurchase of its common stock until the earlier of December 31, 2021, or such time as the company terminates the incremental $131 million of the new revolving credit facility commitments.

The company is working with its members and season pass holders to extend their usage privileges to compensate for any lost days and is offering higher-tiered benefits to members in return for maintaining their current payment plans.

Liquidity Update

As of March 31, 2020, the company had cash on hand of $23 million and, including the revolving credit facility increase, net of $21 million of outstanding letters of credit, had $420 million available under its revolving credit facility. The company expects to have ample cushion under its debt covenants until at least the fourth quarter of 2020, even if the parks were to remain closed through September. The company has no debt maturities until 2024.

At this time, the company believes it has sufficient liquidity to meet its cash obligations until the opening of the 2021 operating season. The company estimates that its net cash outflow during the time its operations are fully suspended will be, on average, $30-$35 million per month.2 

2020 Guidance and Investor Day

In light of the uncertain operating environment, the company has withdrawn its previously provided 2020 Adjusted EBITDA3 guidance.  For the same reason, the company will not hold its previously scheduled investor day on May 28, 2020, and will reschedule it to a later date.

 

 

About Six Flags Entertainment Corporation

Six Flags Entertainment Corporation is the world’s largest regional theme park company and the largest operator of waterparks in North America, with $1.5 billion in revenue and 26 parks across the United States, Mexico and Canada. For 58 years, Six Flags has entertained millions of families with world-class coasters, themed rides, thrilling waterparks and unique attractions. For more information, visit www.sixflags.com.

Forward Looking Statements

The information contained in this release, other than historical information, consists of forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act. These statements may involve risks and uncertainties that could cause actual results to differ materially from those described in such statements. These risks and uncertainties include, among others, (i) the extent to which the coronavirus (COVID-19) outbreak and measures taken in response thereto impact our business, (ii) the adequacy of cash flows from operations, available cash and available amounts under our credit facilities to meet our future liquidity

needs, (iii) our plans and ability to roll out our capital enhancements and planned initiatives in a timely and cost effective manner, (iv) our ability to improve operating results by adopting and implementing a new strategic plan, including strategic cost reductions and organizational and personnel changes, without adversely affecting our business, (v) our dividend policy and ability and plans to pay dividends on our common stock and to repurchase common stock, including the short- and long-term effects of our dividend policy (vi) our planned capital expenditures for 2020 and beyond, (vii) our marketing strategy, (viii) our ongoing compliance with laws and regulations, and the effect of and cost and timing of compliance with newly enacted laws, regulations and accounting policies, (ix) our ability to use cash flow from operations to satisfy our obligations with respect to the Partnership Parks, (x) our ability to realize profitable future growth and to execute and deliver on our strategic initiatives, (xi) our expectations regarding uncertain tax positions, (xii) our expectations regarding our ability to recognize any revenue or profit relating to the development of Six Flags-branded parks in China, (xiii) our expectations regarding our deferred revenue growth, (xiv) our operations and results of operations and expected future operational and financial performance and ability to achieve stated performance targets and metrics, including Adjusted EBITDA, (xv) our objectives regarding recruitment to and composition of our board of directors, (xvi) our ability to identify a new chief financial officer, and (xvii) the risk factors or uncertainties listed from time to time in the company’s filings with the Securities and Exchange Commission ("SEC"). In addition, important factors, including factors impacting attendance, such as local conditions, natural disasters, contagious diseases, events, disturbances and terrorist activities; recall of food, toys and other retail products sold at our parks; accidents occurring at our parks or other parks in the industry and adverse publicity concerning our parks or other parks in the industry; availability of commercially reasonable insurance policies at reasonable rates; inability to achieve desired improvements and our aspirational financial performance goals; adverse weather conditions such as excess heat or cold, rain and storms; general financial and credit market conditions; economic conditions (including customer spending patterns); changes in public and consumer tastes; construction delays in capital improvements and ride downtime; competition with other theme parks, waterparks and entertainment alternatives; dependence on a seasonal workforce; unionization activities and labor disputes; laws and regulations affecting labor and employee benefit costs, including increases in state and federally mandated minimum wages, and healthcare reform; environmental laws and regulations; laws and regulations affecting corporate taxation; pending, threatened or future legal proceedings and the significant expenses associated with litigation; cybersecurity risks and other factors could cause actual results to differ materially from the company’s expectations. Although we believe that the expectations reflected in such forward-looking statements are reasonable, we can give no assurance that such expectations will be realized and actual results could vary materially. Reference is made to a more complete discussion of forward-looking statements and applicable risks contained under the captions "Cautionary Note Regarding Forward-Looking Statements" and "Risk Factors" in our Annual and Quarterly Reports on Forms 10-K and 10-Q, and our other filings and submissions with the SEC, each of which are available free of charge on the company’s investor relations website at investors.sixflags.com and on the SEC’s website at www.sec.gov.

 

Footnotes 

(1)

The new average borrowing rate will be approximately LIBOR plus 290 basis points, with a step-up or step down on margin based on the company’s senior secured leverage ratio, with an average 60 basis point floor on the LIBOR rate.

(2)

Projected net monthly cash outflow reflects the company’s current estimate of ongoing park and operating costs, capital expenditures, membership and season pass revenue, and debt amortization and interest assuming full suspension of park operations for an extended period. The company has not previously experienced a complete cessation of its park operations and, as a consequence, its ability to predict the impact of such cessation on its brands and future prospects is limited. In addition, the magnitude, duration and speed of the coronavirus global pandemic is uncertain. As a consequence, the company cannot estimate the impact on its business, financial condition or near- or longer-term financial or operational results with certainty.

(3)

Adjusted EBITDA, a non-GAAP measure, is defined as the company’s consolidated income (loss) from continuing operations: excluding the cumulative effect of changes in accounting principles, discontinued operations gains or losses, income tax expense or benefit, restructure costs or recoveries, reorganization items (net), other income or expense, gain or loss on early extinguishment of debt, equity in income or loss of investees, interest expense (net), gain or loss on disposal of assets, gain or loss on the sale of investees, amortization, depreciation, stock-based compensation, and fresh start accounting valuation adjustments minus the interests of third parties in the Adjusted EBITDA of properties that are less than wholly owned (consisting of Six Flags Over Georgia, Six Flags White Water Atlanta, and Six Flags Over Texas). Adjusted EBITDA is approximately equal to “Parent Consolidated Adjusted EBITDA” as defined in our secured credit agreement, except that Parent Consolidated Adjusted EBITDA excludes Adjusted EBITDA from equity investees that is not distributed to us in cash on a net basis and has limitations on the amounts of certain expenses that are excluded from the calculation. Adjusted EBITDA as defined herein may differ from

similarly titled measures presented by other companies. Our board of directors and management use Adjusted EBITDA to measure our performance and our current management incentive compensation plans are based largely on Adjusted EBITDA. We believe that Adjusted EBITDA is frequently used by all of our sell-side analysts and most investors as their primary measure of our performance in the evaluation of companies in our industry. In addition, the instruments governing our indebtedness use Adjusted EBITDA to measure our compliance with certain covenants and, in certain circumstances, our ability to make certain borrowings. Adjusted EBITDA, as computed by us, may not be comparable to similar metrics used by other companies in our industry.