Bally Manufacturing Corp said it signed a definitive agreement to sell the stock of its Six Flags theme park subsidiary to an affiliate of Wesray Capital Corp. Ccompletion of the proposed transaction is expected in early May it said. Bally said it will receive gross proceeds of 350 mln dlrs for the Six Flags subsidiary. Bally said the transaction is part of its restructuring and will result in an after tax profit of about 100 mln dlrs. Proceeds from the sale of Six Flags will be used for general corporate purposes and to reduce debt it said. The sale of the theme parks will also remove from Ballys balance sheet an additional 250 mln dlrs in Six Flags debt now carried on the Bally balance sheet it said. Kidder Peabody will provide bridge financing to Wesray to complete the proposed transaction Bally said. Six Flags operates seven major theme amusement parks two water parks and other family oriented entertainment facilities. Wesray Capital is a private investment firm based in Morristown New Jersey.
BALLY <BLY> SELLS SIX FLAGS FOR 350 MLN DLRS