ATLANTA, June 1 (Reuters) - Theme park operator Six Flags Inc said on Monday that it plans to defer an interest payment of about $15 million on senior notes due 2014, taking advantage of a 30-day grace period.
The company, which has offered to exchange notes for stock in a bid to reduce debt and stave off a Chapter 11 filing, said in a statement that use of the grace period does not constitute a default. The payment on the 2014 senior notes was due on Monday.
It was at least the third time this year Six Flags said it would defer a bond payment. On May 14, the company made a $7 million interest payment on its 9.75 percent senior notes due 2013 after a 30-day grace period. Around that time, it also said it would defer a semi-annual payment of about $6 million on convertible senior notes due 2015.
Last week, Six Flags extended the deadline for its note tender, saying bids it received were 'substantially below' the minimum level it had set. It named a June 12 deadline to give debtholders additional time to consider the offer.
(Reporting by Karen Jacobs; Editing Bernard Orr) Keywords: SIXFLAGS/ (karen.jacobs@thomsonreuters.com + 1 404-493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company, which has offered to exchange notes for stock in a bid to reduce debt and stave off a Chapter 11 filing, said in a statement that use of the grace period does not constitute a default. The payment on the 2014 senior notes was due on Monday.
It was at least the third time this year Six Flags said it would defer a bond payment. On May 14, the company made a $7 million interest payment on its 9.75 percent senior notes due 2013 after a 30-day grace period. Around that time, it also said it would defer a semi-annual payment of about $6 million on convertible senior notes due 2015.
Last week, Six Flags extended the deadline for its note tender, saying bids it received were 'substantially below' the minimum level it had set. It named a June 12 deadline to give debtholders additional time to consider the offer.
(Reporting by Karen Jacobs; Editing Bernard Orr) Keywords: SIXFLAGS/ (karen.jacobs@thomsonreuters.com + 1 404-493-3656; Reuters Messaging: karen.jacobs.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.