Six Flags Gets Bids For Parks That May Disappoint Investors

[GADVwow]

At least so far, this isn't over on the left side in the industry updates.  This is NOT good news for Great Adventure, either.  Sigh.

http://www.bloomberg.com/apps/news?pid=20601103&sid=ato.wrv3JYoU&refer=news

The article begins:

Nov. 10 (Bloomberg) -- Six Flags Inc., seeking to reduce its $2.2 billion of debt by selling theme parks, received bids for the properties that may fall short of investors' expectations, two people briefed on the matter said.

Buyout firm MidOcean Partners and theme park operator Herschend Family Entertainment Corp. offered less than $650 million for the six locations, said the people, who declined to be identified because the process is private. Real estate investor CNL Financial Group offered at least $650 million, one of the people said.

Six Flags, the second-largest U.S. theme-park operator with 30 properties, may need $800 million to sufficiently lower debt ratios, according to analysts including Merrill Lynch & Co.'s John Maxwell. Chairman Daniel Snyder, who owns the Washington Redskins professional football team, is trying to cut the debt load and reverse a 20 percent drop in Six Flags stock this year.

``The market will be disappointed if meaningful proceeds are not achieved,'' Barbara Cappaert, an analyst at Montpelier, Vermont-based KDP Investment Advisors, wrote in a Nov. 3 note to clients. ``Asset sales are critical to gaining investor confidence.''. . . 

[coastermom]

well at least we are not on the selling block yet!!! I do hope that it never comes down to that but don't expect any new rides for years to come. At least not anything big.

[Bubba Z]

My biggest concern is what ever park(s) they do sell, is that they remain as an Amusement park(s) and not anything else.   Without the park,  management and rides really don't matter.   

[ChuckR]

Exactly Joseph!

[PcMan]

Yes they want to sell  as a whole and they want the buyers to continue the properties as parks.
THe weather so nice the parks could have stayed open a few more weeks 

[coastermom]

If the purchasers do keep them as parks do you think any other major park chain will look into these parks?? I don't know too much about the other parks except the one in Calf. is worth lots of money for the land . Which is the saddest thing. Though they say that about SGDV too . : ( .


 agree the weather is great I vote to open the park again !!! : )

[GADVwow]

I honestly think the part about Six Flags preferring to see them kept as park is good PR smoke.  After all, money is money and Six Flags is deep in debt.  If one buyer is paying a lot more than another, I don't see how they can pass that up.  Not to mention there is no guarantee ANY buyer won't soon or eventually use the property for other purposes or sell it for those same other purposes.

And GAd's land is not anywhere near as valuable as that of MM, or even of SFA, for that matter. . .

[GADVwow]

Today's LA Times, which requires registration, says Herschend's (the company that operates Dollywood) bid does NOT include Magic Mountain, in which the company has no interest....

[ChuckR]

Yeah, I saw that. That is pretty crazy...

[depotrat]

Not crazy at all.  Herschend probably has no desire to take on the SFMM mess.  First it is a tough market with Disney dominating the area.  Second SFMM has a MAJOR clientele problem.  The family strategy that SF is trying and Herschend already has will be difficult to implerment there. 

That Hershschnd offered around $600 million for the other parks is amazing.  SFI should grab it.

[PcMan]

Lets see what the 2nd wek of December will bring
I heard thats when they will make some decisions on the bids.
Lets hope Herschend picks up the other parks and others can just bid on MM whcih I would think prove to be more $ for Six Flags.
We will now in about a month.
Lets go Eagles