Cedar Fair: Raising Debt To Boost Survival Odds

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About: Cedar Fair, L.P. (FUN)
by: Bennington Investment Ideas
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Summary

Cedar Fair L.P. (FUN) is an owner and operator of amusement parks including the iconic Cedar Point in Sandusky, Ohio.

FUN's price has declined by approximately 50% from February values and has announced significant steps to shore up liquidity to set the stage for future park openings.

A near-term return to any meaningful operations does not appear to be priced into the stock as the board recently suspended distributions.

In fact, this analysis shows that there is a signficant chance that FUN will ultimately face solvency issues.

Cedar Fair LP (FUN) is the owner of several iconic amusement parks, including Cedar Point located in Sandusky, Ohio, recently raised $1 billion in debt and took other significant steps to manage its