The company that manages Gilroy Gardens is entering a
refinancing plan, company officials announced last week. Officials
with Ohio-based Cedar Fair Entertainment, which also owns
California’s Great America, announced Thursday the issuing of $500
million in senior unsecured notes that are due in 2020.
The company that manages Gilroy Gardens is entering a refinancing plan, company officials announced last week. Officials with Ohio-based Cedar Fair Entertainment, which also owns California’s Great America, announced Thursday the issuing of $500 million in senior unsecured notes that are due in 2020.
Although the deal could entail some risks, company representatives said the notes have historically generated a stable cash flow and have some of the highest margins in earnings before interest, taxes, depreciation and amortization in the theme park industry.
Cedar Fair raked in $35.4 million in net income in 2009 up from $5.7 million in 2008 and a $4.5 million deficit in 2007, according to a company statement.
Company officials say they have been able to significantly increase earnings before taxes, depreciation, interest and amortization at the five Paramount Parks – which include Great America – that it acquired in 2006.
“We believe that our disciplined approach to costs and expenses will continue to contribute to our industry leading margins and provide us with flexibility during downturns in the economy and in our business,” officials said in a financial statement.
Sandusky, Ohio-based Cedar Fair is a publicly traded partnership that owns and operates 11 amusement parks, six outdoor water parks, one indoor water park and five hotels. The company inherited the contract to run Gilroy Gardens after it acquired Paramount Great America in 2006.
