Six Flags completes financing of partnership obligations

Six Flags, Inc. 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.