Today's LIBOR Rates
1 M |
0.31563 |
 |
3 M |
0.47500 |
|
6 M |
0.68794 |
|
1 YR |
1.06438 |
|
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Six Flags Enlists LIBOR-Based Financing |
January 8, 2010
The Wall Street Journal reports that theme park operator Six Flags has received LIBOR-based financing in its exit from bankruptcy. LIBOR stands for London Interbank Offered Rate and is a filtered average of rates that banks charge each other for unsecured, short-term loans.
A consortium of major lenders—JPMorgan Chase & Co., Bank of America Merrill Lynch, Barclays Capital and Deutsche Bank—has extended $830 million in financing to facilitate Six Flags’ emergence from bankruptcy. The theme park operator filed for bankruptcy in June 2009, surrendering a 92% ownership stake to its lenders in exchange for canceling $1.1 billion in debt. Six Flags’ new debt will be split between a term loan and revolving credit line, both with an interest rate of LIBOR plus 4.25% at a LIBOR floor of 2%, creating a minimum rate of 6.25%. Currently, key LIBOR rates in US Dollars are well below 1%.