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Theme Parks: Six Flags Completes Financing of Partnership Parks ‘Put’ Obligations


Six Flags, Inc. (OTC Bulletin Board: SIXF – News) announced today that it received the proceeds of a loan from a subsidiary of Time Warner Inc. to fund approximately $53 million of 2009 "put" obligations related to its Six Flags Over Texas and Six Flags Over Georgia parks, including Six Flags White Water Atlanta (the "Partnership Parks").

The Company had previously announced that, as of the end of the 2009 "put" period on April 28, 2009, it had received "put" notices from holders of units in the limited partnerships that own the Partnership Parks, with an aggregate "put" price of approximately $66 million. The general partner of the Georgia limited partnership elected to purchase Georgia units having a total purchase price of approximately $7 million, and an additional $6 million of the "put" obligations was funded with cash that was being held in escrow.

A subsidiary of Time Warner loaned approximately $53 million to the Company’s subsidiaries that are obligated to fund the "put" obligations. Interest on the loan will accrue at a rate of 14% per year, and the principal amount of the loan matures on March 15, 2011. The loan requires semi-annual prepayments with the proceeds received by the Company related to the Partnership Parks limited partnership units owned by the Company’s subsidiaries. The loan is guaranteed by Six Flags, Inc., Six Flags Operations Inc. and Six Flags Theme Parks Inc. up to an aggregate amount of $10 million.

The Company also announced that on May 14, 2009, it irrevocably paid in immediately available funds to the paying agent of its 9-3/4% Senior Notes due 2013 (the "2013 Notes"), interest on the 2013 Notes in the amount of approximately $7 million previously due on April 15, 2009, together with the additional interest owed, and distributed notices to the holders in connection with such payment, in accordance with the indenture.

The Company has also chosen to take advantage of the applicable 30-day grace period for making the semi-annual interest payment of approximately $6 million due on its 4-1/2 Convertible Senior Notes due 2015 (the "Convertible Notes") as it continues to assess and evaluate the Company’s restructuring options. Under the applicable indenture relating to the Convertible Notes, use of the 30-day grace period does not constitute a default that permits acceleration of the Convertible Notes or any other indebtedness. Additional details regarding the Convertible Notes are available in the Company’s Annual Report on Form 10-K for the year ended December 31, 2008 filed with the Securities and Exchange Commission.

About Six Flags

Six Flags, Inc. is the world’s largest regional theme park company with 20 parks across the United States, Mexico and Canada, and soon will be expanding beyond North America with destinations in Dubai and Qatar. Since 1961, hundreds of millions of families have trusted Six Flags to combine friendly-clean-fast-safe service with affordable, value-packed thrills, record-shattering roller coasters and special events like the Summer Concert Series, Fright Fest and Holiday in the Park. Six Flags’ wide array of entertainment options reaches all demographics – families, teens, tweens and thrill seekers alike – featuring themed attractions based on skateboarding legend Tony Hawk, the ultimate daredevil Evel Knievel, movie franchises The Dark Knight and The Mummy; as well as world-renowned, kid-friendly brands including Looney Tunes, the Justice League of America, The Wiggles and Thomas the Tank Engine.

Six Flags continues to develop new avenues for growth, acquiring ownership and management of Dick Clark Productions, producer of such perennial television hits as the American Music Awards, the Golden Globe Awards, the Academy of Country Music Awards, Dick Clark’s New Year’s Rockin’ Eve and So You Think You Can Dance. Six Flags, Inc. is a publicly-traded corporation headquartered in New York City.

See also:
Theme Parks: Six Flags Announces Debt for Equity Exchange Offer for its 4.50% Convertible Notes Due 2015

Six Flags To Report First Quarter 2009 Results on Friday, May 8, 2009 
 Record Breaking Crowds for Spring Break at Six Flags Discovery Kingdom
Six Flags Announces OTC Bulletin Board Symbol

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