Six Flags Entertainment Expands Share Buyback Program

Six Flags Entertainment said Thursday it is expanding its share buyback program by $500 million, adding to $322 million left available under a prior program. The company said separately it is offering up to $1.2 billion in senior notes in a private offering and plans to use net proceeds to finance its $800 million 5.25% senior notes due 2021 and for general corporate purposes including the share repurchases and transaction expenses.

Six Flags said it expects this refinancing transaction to enhance its covenant flexibility and extend its maturity schedule. “Given our strong business momentum, our significant future growth prospects and our highly recurring cash flow stream, we intend to use the incremental debt proceeds from our bond offering announced today to accelerate our share repurchases, which we believe represents a tremendous value for our shareholders,” CEO John Duffey said. “At the same time, we intend to continue increasing our annual dividend at a high-single digit to low-double digit percentage rate for many years to come.”

By DR Staff Writer