The new Six Flags aims to trim debt

Article Excerpt

SIX FLAGS ENTERTAINMENT CORP. $39 is a hold. The company (New York symbol SIX; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 100.3 million; Market cap: $3.9 billion; Price-to-sales ratio: 1.1; No dividend paid; TSINetwork Rating: Average; www.sixflags.com) took its current form on July 1, 2024 when Cedar Fair L.P. merged with rival amusement park operator Six Flags Entertainment (old New York symbol SIX) in an all-stock transaction. The combined firm operates 27 amusement parks, 15 water parks and 9 resort properties in the U.S., Canada, and Mexico. Cedar Fair unitholders received one common share of the combined company for each unit they held; Six Flags shareholders received 0.58 of a share for each share they owned. That gave Cedar Fair investors 51.2% of the new company, with Six Flags shareholders holding 48.8%. The combined firm will probably use its excess cash flow to pay down debt and invest in new rides and attractions instead of paying a dividend. As of June 30, 2024, the combined…