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NEW YORK (Reuters) — Six Flags (SIX) said Thursday that it sold three water parks and four theme parks for $312 million as part of its efforts to reduce debt, sending its shares surging.
The amusement park operator has been reworking its business since a shake-up of its board and top management after investor Daniel Snyder won a long-running battle for control of the company in 2005. Six Flags has since been focusing on families and improving its financial position.
Six Flags, which had planned to sell up to nine parks, will receive $275 million in cash and a note receivable for $37 million for the parks near Buffalo; Denver; Houston, Concord, Calif.; Seattle; and two parks near Oklahoma City.
With the latest divestment, Six Flags will have raised $352 million in gross cash proceeds, including the June 2006 sale of land in Houston, to pay down debt.
Six Flags Magic Mountain and the adjacent Hurricane Harbor water park in Valencia, Calif., which were on the block, will be retained and open for business in 2007, the company said.
PARC Management is buying the parks, selling them to real estate income trust CNL Income Properties and leasing them back. PARC will operate the parks.
The transaction is expected to be completed in March.
NEW YORK (Reuters) — Six Flags (SIX) said Thursday that it sold three water parks and four theme parks for $312 million as part of its efforts to reduce debt, sending its shares surging.
The amusement park operator has been reworking its business since a shake-up of its board and top management after investor Daniel Snyder won a long-running battle for control of the company in 2005. Six Flags has since been focusing on families and improving its financial position.
Six Flags, which had planned to sell up to nine parks, will receive $275 million in cash and a note receivable for $37 million for the parks near Buffalo; Denver; Houston, Concord, Calif.; Seattle; and two parks near Oklahoma City.
With the latest divestment, Six Flags will have raised $352 million in gross cash proceeds, including the June 2006 sale of land in Houston, to pay down debt.
Six Flags Magic Mountain and the adjacent Hurricane Harbor water park in Valencia, Calif., which were on the block, will be retained and open for business in 2007, the company said.
PARC Management is buying the parks, selling them to real estate income trust CNL Income Properties and leasing them back. PARC will operate the parks.
The transaction is expected to be completed in March.
