According to a filing with the SEC, Wells Fargo is serving as administrative agent on an amendment to Six Flags’ credit facility to further extend the covenant waiver period by one year from Q4/20 to Q4/21 and to extend the covenant modification period by one year through Q4/22. In addition, all of Six Flags’ incremental revolving credit lenders agreed to extend the incremental $131 million revolving commitments by one year.
“The operational actions we have taken to respond to the COVID-19 crisis, coupled with the one-year extension of both our covenant waiver period and the incremental revolving credit facility commitments, provide us with significant flexibility and financial strength as we manage through the pandemic-related disruption,” Mike Spanos, president and CEO of Six Flags, said. “We remain focused on safely reopening more of our parks, profitably growing our base business and reducing our net leverage ratio.”
The amendment will, among other benefits, extend the suspension of the testing of the senior secured leverage ratio financial maintenance covenant through the end of 2021, unless Six Flags elects to resume the net leverage covenant earlier. Commencing with Q1/22 through Q3/22, Six Flags may elect to calculate the net leverage covenant by substituting borrower consolidated adjusted EBITDA, as defined in the credit agreement, from the second, third and fourth quarters of 2022 with borrower consolidated adjusted EBITDA from the second, third and fourth quarters of 2019. As a result, this amendment will eliminate the use of borrower consolidated adjusted EBITDA from 2020, or the second, third and fourth quarters of 2021, in any net leverage covenant test. In addition, Six Flags agreed to extend the duration of the minimum liquidity covenant through Dec. 31, 2022.
Six Flags is an operator of regional theme parks and waterparks in North America.
