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Vote delayed on proposed merger of Kings Island’s owner

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By Denise G. Callahan, Staff Writer Updated 9:31 PM Tuesday, March 16, 2010

SANDUSKY — The vote on the proposed merger of Kings Island’s parent company with Apollo Global has been delayed until early next month.

Cedar Fair unit-holders were expected to vote Tuesday, March 16, on the proposed merger. Cedar Fair officials released a statement saying the delay to April 8 was for the purpose of soliciting more votes and proxies and giving the unit-holders more time to consider their options.

Cedar Fair recently issued some dire predictions if the merger is defeated.

In a letter sent to all unit holders on March 2, the amusement park operator warned that it is operating under crippling debt and already suspended distributions will remain in limbo. Shareholders could also face tax liabilities if the merger fails.

“Despite our best efforts, we may be unable to refinance our debt in a manner that would allow us to resume distributions at any level or at all,” according to a statement. “Based on the amount of our outstanding debt, the uncertainties of the future and the experience of the last 18 months, we believe it would be imprudent to reinstate the distribution (even if our financing arrangements allowed) until we were able to reduce our outstanding debt to an appropriate level.”

Cedar Fair agreed in December to be acquired for $2.4 billion by Apollo Global Management, the New York-based asset manager. Apollo also agreed to absorb Cedar Fair’s estimated $1.6 billion debt. The deal cannot be consummated without a two-thirds vote of unit-holders.

Cedar Fair spokeswoman Stacy Frole could not be reached for comment.

Contact this reporter at (513) 696-4525 or dcallahan@coxohio.com.

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