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SeaWorld Parks & Entertainment (SEAS) Corporate Thread

P. 15: SeaWorld Abu Dhabi construction now 40% complete

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http://www.bloomberg.com/news/2013-04-03/blackstone-said-to-plan-moving-ahead-on-seaworld-ipo-this-month.html

 

Blackstone Group LP (BX) is moving ahead with the initial public offering of SeaWorld Entertainment Inc. (SEAS) as soon as this month after rejecting takeover bids for the theme-park operator, said a person familiar with the matter.

 

Blackstone will probably begin marketing the sale to investors in the last two weeks of April, said the person, who asked not to be named as the process is private. Apollo Global Management LLC (APO) and Onex Corp. each made bids for Orlando-based SeaWorld, people with knowledge of the matter said in February.

 

The IPO would be at least the second for a Blackstone portfolio company this year as the world’s largest buyout firm takes advantage of investor optimism, which has buoyed equity markets to record highs. Blackstone peers such as Apollo, Carlyle Group LP and Warburg Pincus LLC also are readying holdings for public debuts as they begin to exit some of their biggest investments.

 

Christine Anderson, a spokeswoman for New York-based Blackstone, declined to comment, as did Charles Zehren, a spokesman for Apollo at Rubenstein Associates Inc. A representative at Toronto-based Onex didn’t immediately return a call seeking comment.

 

SeaWorld filed for a U.S. IPO last year using a placeholder amount of $100 million, filings show. The company may raise $500 million in the offering, people familiar with the matter said in December. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are leading the sale.

 

IPO Window

 

IPOs in the U.S. raised $8.9 billion from the beginning of 2013 through March, 44 percent more than a year earlier, according to data compiled by Bloomberg, as record highs in the Dow Jones Industrial Average and Standard & Poor’s 500 Index spurred companies and their owners to sell new shares.

 

U.S. initial offers this year have handed buyers an average gain of 23 percent, data compiled by Bloomberg show. That’s compelled companies such as Warburg Pincus’s Bausch & Lomb Holdings Inc., Madison Dearborn Partners LLC’s CDW Corp. and Bain Capital LLC and TPG Capital’s Quintiles Transnational Holdings Inc. to file IPO plans since January.

 

Blackstone took control of SeaWorld after agreeing in 2009 to buy Anheuser-Busch InBev NV’s (ABI) amusement-park business in a deal then valued at as much as $2.7 billion. The company operates almost a dozen amusement parks in states such as Florida, California and Texas and competes with Walt Disney Co. (DIS) and Six Flags Entertainment Corp. (SIX)

 

SeaWorld Valuation

 

Six Flags trades at about 13.6 times earnings before interest, taxes, depreciation and amortization in the 12 months through December, according to data compiled by Bloomberg. That’s also the median of a basket of comparable SeaWorld peers, data compiled by Bloomberg show. If SeaWorld were valued at the same rate, it would have an enterprise value of about $5.36 billion.

 

Revenue at SeaWorld has swelled 19 percent since 2010 to $1.42 billion after attendance climbed and the average amount customers spent rose. Capital expenditures have grown too, climbing 60 percent over the same period as SeaWorld revamped parks and added attractions such as Antarctica: Empire of the Penguin. SeaWorld’s capital spending is equal to about 49 percent of its Ebitda. That compares with about 28 percent for Grand Prairie, Texas-based Six Flags.

 

Blackstone recouped some of its initial investment in SeaWorld, as the theme-park operator paid out a $500 million special dividend to its owners last year, filings show. Blackstone expects an IPO to yield better returns over time than a possible sale, said one person.

 

Pinnacle’s Success

 

The buyout firm has already benefited from an offering last month for Pinnacle Foods Inc. (PF), the maker of Hungry-Man dinners and Duncan Hines cake mix. The Parsippany, New Jersey-based company sold shares at the top of the proposed price range on March 27 and had surged 17 percent from its debut level through yesterday.

 

Fellow buyout firms are looking to duplicate that success. New York-based Apollo’s Evertec LLC, which offers transaction- processing services in Latin America and the Caribbean, is scheduled to price its IPO April 11, data compiled by Bloomberg show. Bausch & Lomb filed for an IPO March 22 after efforts to sell the company privately were said to falter.

 

http://www.bloomberg.com/news/2013-04-08/seaworld-raises-amount-sought-in-initial-offer-to-500-million.html

 

SeaWorld Entertainment Inc. (SEAS), the aquatic theme-park operator owned by Blackstone Group LP, boosted the amount it plans to raise from an initial public offering to $500 million.

 

The company disclosed the new placeholder amount in a regulatory filing today, without setting a specific price range. Orlando-based SeaWorld filed for a U.S. IPO with a $100 million placeholder amount in December.

 

Blackstone, the world’s biggest private-equity firm, is moving ahead with the IPO as soon as this month after rejecting takeover bids for the theme-park operator, a person familiar with the matter said last week. Apollo Global Management LLC (APO) and Onex Corp. each made bids for Orlando-based SeaWorld, people with knowledge of the matter said in February.

 

Goldman Sachs Group Inc. and JPMorgan Chase & Co. are leading the IPO for the theme-park company. SeaWorld plans to list on the New York Stock Exchange under the symbol SEAS.

 

Blackstone took control of SeaWorld after agreeing in 2009 to buy Anheuser-Busch InBev NV’s (ABI) amusement-park business in a deal then valued at as much as $2.7 billion. SeaWorld, which competes with Walt Disney Co. (DIS) and Six Flags Entertainment Corp., runs almost a dozen amusement parks in states such as Florida, California and Texas.

Edited by jedimaster1227
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Surprise! PETA buys shares in SeaWorld

 

SeaWorld Entertainment Inc. made waves Friday in its first day of trading on the New York Stock Exchange when its stock opened at $30.56 a share. One newly invested part-owner quickly stepped forward -- People for the Ethical Treatment of Animals.

No matter which side of the fence your opinions lie, everyone loves a good blind-side. And PETA just dished out a doozy.

Although the animal rights organization did not disclose how many shares it had bought, the group ensured it was sufficient enough, "to give us the right to attend and speak at annual meetings and to submit shareholder resolutions asking for policy changes," they said.

For a corporation that usually has its ducks (penguins?) all in a row, SeaWorld executives cannot be happy.

PETA meanwhile, has set its own shareholder agenda.

"Our first order of business as part owners of SeaWorld," wrote Michelle Kretzer in PETA's blog, is "Getting the orcas out—including Corky, who has been enslaved by SeaWorld for 44 years."

Ouch. The annual meetings should be fun.

But PETA isn't stopping there. The organization said that it is also proposing to "educate stockholders about how marine parks tear orcas and dolphins away from their homes and families and imprison them in minuscule concrete tanks, where they suffer from captivity-induced stress and illness."

Now I'd definitely buy a ticket to see that.

 

 

Read more: http://www.digitaljournal.com/article/348462#ixzz2RDcvoLxv

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I posted this in another thread, but I think this is the correct thread for the discussion.

 

I really dislike how hypocritical PETA is. To spend all this money in buying shares in SeaWorld when it was proven that the shelters that euthanized the most animals last year were owned by them. Why not spend more money on protecting animals?

 

Anyway it has been proven in the past that any animal who has to hunt for it's food that was raised in captivity cannot survive in the wild without being taught how to hunt by their parents. So if by some astronomical legal wrangling PETA forces this to happen through the courts, then they will be killing the animals as a result.

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I wish I had a video clip of it but I'm having images from the movie Mr Deeds, when Winona Ryder walks in with her 1 share and demands she gets to talk.

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Meanwhile, at SeaWorld...

1125128916_seaworldIPO.jpg.68f9bcab47a10554152e17200e9ab42c.jpg

 

To be honest though, unless PETA buys more stock, the preferred stockholders and higher ups could continue to shrug them off. Meanwhile, PETA would just be sitting on an investment in SeaWorld rather than... you know... actually helping animals.

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They bought enough shares to make this a small headline, and that's pretty much as far as their voice will carry.

 

And that's all that PETA is really interested in.

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^Exactly. Now they will just show up at all the annual shareholder meetings, annoy everyone with their protests, and have any motions they propose shut down.

 

From the prospectus:

 

Immediately following this offering of common stock, affiliates of Blackstone will beneficially own approximately 67.5% of our common stock, or approximately 63.3% if the underwriters exercise in full their option to purchase additional shares. As a result, investment funds associated with or designated by affiliates of Blackstone will have the ability to elect all of the members of our Board of Directors and thereby control our policies and operations, including the appointment of management, future issuances of our common stock or other securities, the payment of dividends, if any, on our common stock, the incurrence or modification of debt by us, amendments to our amended and restated certificate of incorporation and amended and restated bylaws and the entering into of extraordinary transactions, and their interests may not in all cases be aligned with your interests. In addition, Blackstone may have an interest in pursuing acquisitions, divestitures and other transactions that, in its judgment, could enhance its investment, even though such transactions might involve risks to you. For example, Blackstone could cause us to make acquisitions that increase our indebtedness or cause us to sell revenue-generating assets. Additionally, in certain circumstances, acquisitions of debt at a discount by purchasers that are related to a debtor can give rise to cancellation of indebtedness income to such debtor for U.S. federal income tax purposes.
Edited by Jew
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They bought enough shares to make this a small headline, and that's pretty much as far as their voice will carry.

 

And that's all that PETA is really interested in.

 

 

^This.. PETA purchased about $2000.00 dollars worth of shares, which allows them to propose "shareholder resolutions"... Think of a shareholder resolution as a non-binding poll, that is usually used by activist groups to make headlines. The board and the company are not required to even follow the vote of a shareholder resolution even if it receives the majority of votes by all voting shareholders... It's a pure headlines grab.

 

 

-chris "PETA likely spent twice as much in issuing press releases to announce this" con

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^That's the shame of the situation... I expect the annual meetings Q&A sessions to always have at least one person ranting on and on, wasting valuable time talking about a topic that few other shareholders will care about or agree with... But that is the wonder of a publicly traded company--agenda pushers like these can buy their way in just to speak up.

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  • 3 years later...

http://www.marketwatch.com/story/seaworld-upgraded-but-it-still-desperately-needs-roller-coasters-2016-08-11

 

 

SeaWorld could pursue a more “aggressive reinvestment” strategy and sell its Busch Gardens Parks, potentially to Cedar Fair FUN, -0.76% or Six Flags SIX, -0.89% for a resulting $1 billion in proceeds, Chaiken wrote in a note to clients. With that money, he said SeaWorld could pay down its debt, while adding 25 new roller coasters “which would help transform the experience of its park overnight.”

 

 

I don't see Cedar Fair (Except for Busch Williamsburg) as they don't do animals. I could see Six Flags buying Busch Tampa.

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Interesting article, but I don't really see how investing in roller coasters would benefit SeaWorld San Diego considering they can't really build anything over 30 feet tall. I'm all for a bunch of Mantas but just don't see it in the cards. Maybe they should sell the San Diego park to Disney.....

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I can't see either chain expending that kind of money right now. Any investment, in my mind, is much more likely to come from outside the US in the form of someone like Wanda or a real estate firm backed with Middle Eastern money.

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Interesting article, but I don't really see how investing in roller coasters would benefit SeaWorld San Diego considering they can't really build anything over 30 feet tall. I'm all for a bunch of Mantas but just don't see it in the cards. Maybe they should sell the San Diego park to Disney.....

 

 

I'll bite. How about A Launched B&M Wing Coaster that has a corkscrew over a midway? Have it go through tunnels or something.

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Kinda weird to see a report from a financial analyst stating something as specific as cutting a dividend to investing in new roller coasters, especially since that's pretty much what they did this past year, and already have one new coaster announced for next year.

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I can't see another American amusement chain buying them. My vote would be a company not yet in the amusement industry or foreign money.

 

Edit: I wouldn't mind seeing Herschend gettint their hands on it somehow.

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Interesting article, but I don't really see how investing in roller coasters would benefit SeaWorld San Diego considering they can't really build anything over 30 feet tall. I'm all for a bunch of Mantas but just don't see it in the cards. Maybe they should sell the San Diego park to Disney.....

 

 

I'll bite. How about A Launched B&M Wing Coaster that has a corkscrew over a midway? Have it go through tunnels or something.

Name it Mantwo and we'll be good to go!

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  • jedimaster1227 changed the title to SeaWorld Parks & Entertainment (SEAS) Corporate Thread

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