Cedar Fair is meeting with its bankers Friday, trying to cut a new deal on a $1.175 billion loan to reduce borrowing costs, according to an article from Bloomberg News.
The deal could affect the cash dividends Cedar Fair pays to its investors. According to the piece, KDP Advisors Inc. analyst Barbara Cappaert wrote, "We suspect the company will look not only to reduce interest costs but may also try to loosen financial ratio covenants to allow for modest dividends to be reinstated to shareholders."
Cedar Fair spokeswoman Stacy Frole had no comment.
Cedar Fair officials, responding to complaints that it isn't ramping up its renewal of cash distributions quickly enough, said on Jan. 24 that the company's board is reviewing plans for cash distributions. "As part of that process, we will consider all options available under our current capital structure with respect to the payment of future distributions," CEO Dick Kinzel said.