1/12/2007 Magic Mt not part of 6 Flags sale

It's all over, but just so you know......


from Forbes online 1/12/2007:

Magic Mountain Spared in Six Flags Sale
By ALEX VEIGA 01.12.07, 10:59 AM ET

"The owner of Magic Mountain will continue operating the roller-coaster theme park and its adjacent Hurricane Harbor water park in Valencia, excluding the properties from a $312 million theme park sell-off.

The move by New York-based Six Flags Inc. (nyse: SIX - news - people ) ends months of speculation on the fate of Magic Mountain, which last year appeared like it might be among a several theme parks destined for the auction block.

Six Flags announced Thursday it would sell seven of its 30 North American parks in a bid to improve its debt-laden balance sheet.

Magic Mountain and Hurricane Harbor will remain open for business this year and beyond, the company said.

Last year, real estate developers offered to buy Magic Mountain in hopes of razing it, but Six Flags ruled out any buyers who did not plan to keep the park open.

Attendance at Magic Mountain fell 12 percent during the key June through December period last year compared with the same period in 2005.

The company has blamed that attendance drop in large part to uncertainty about the park's future."
For complete story see: http://www.forbes.com/feeds/ap/2007/01/12/ap3324690.html



From Reuters 1/11/2007:

Six Flags rises after parks sale news
Thu Jan 11, 2007 8:58 AM ET

"NEW YORK (Reuters) - Shares of Six Flags Inc. rose 5.9 percent to $5.75 in trading before the market opened on Thursday after the amusement park company said it will sell seven parks."
for complete article see: http://today.reuters.com/news/articleinvesting.aspx?type=hotStocksNews&storyID=2007-01-11T135830Z_01_N11395869_RTRUKOC_0_US-MARKETS-STOCKS-BEFORETHEBELL-six.xml




From the Houston Chronicle 1/12/2007

Jan. 12, 2007, 10:18AM
S&P Keeps Six Flags on Watch Negative

"NEW YORK — Standard & Poor's Ratings Services said Friday its ratings, including the 'B-' corporate credit rating, on amusement park operator Six Flags Inc. remains on CreditWatch with negative implications.

The CreditWatch update followed Six Flags' Thursday announcement it agreed to sell seven of its parks for $312 million.

New York-based regional theme park owner and operator Six Flags had $2.5 billion of debt and preferred stock outstanding as of Sept. 30. The company said Thursday it will use the cash proceeds of the sale, which is expected to be completed in March 2007, to reduce debt.

"We remain concerned that debt reduction from the proceeds of the transaction will not reduce pro forma debt leverage, which we see as high," said Standard & Poor's credit analyst Hal F. Diamond.

The ratings agency said it will reevaluate the company's business strategies, operating outlook and liquidity in light of plans for debt reduction."
for the complete article go to: http://www.chron.com/disp/story.mpl/ap/fn/4466382.html