Cedar Fair to offer more stock

Thursday, 15 June 2006

By BRANDI BARHITE
brandibarhite@sanduskyregister.com

SANDUSKY - Cedar Fair will offer more stock to pay down its debt from the $1.24 billion purchase of Paramount Parks.

The Sandusky-based partnership announced Wednesday it looks to make 10 million new units of its stock available, depending on marketing conditions, in the next six months. Those interested should contact a broker.

"We will hire several companies to underwrite this deal and put (the units) into prospective buyers' hands," said Stacy Frole, director of investor relations.

Traded under the symbol FUN on the New York Stock Exchange, Frole said the stock offering will raise up to $250 million. The cost of each unit will depend on the market price. Cedar Fair's stock closed at $25.81 Wednesday.

Frole said Cedar Fair hasn't put a number exactly on how many units it will offer, but probably about 10 million. The partnership is still finalizing its debt, she said.

Cedar Fair went public in 1987. Since then, it made an offering in 2004 after the partnership purchased Geauga Lake in Aurora, Ohio. At that time, Cedar Fair sold 2.4 million units at $30 per unit. The newest offering will be the third for the company, although Cedar Fair has issued units in the past for purchases.

For example, units were used in the purchase of Dorney Park, Allentown, Pa., because the family was interested in obtaining stock, Frole said.

Currently, Cedar Fair has more than 54 million units among an undetermined amount of investors. Cedar Fair mails about 75,000 tax forms annually, though, Frole said. Each share earns $1.88 in distribution.

In May, Cedar Fair solidified its standing as one of the largest amusement park operators in the world after announcing it was purchasing five Paramount Parks, including Kings Island, near Cincinnati. Frole said the transaction is expected to close in the third quarter.

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