Six Flags park divestitures a ‘modest positive,’ says Jefferies

After Six Flags (FUN) announced it has entered into definitive agreements to sell seven of its parks to EPR Properties (EPR) for total cash consideration of $331M, Jefferies said the deal “should be a modest positive for the shares” given the slight reduction in leverage, but adds that there are “still some questions.” The deal should allow management to focus on the remaining 34 parks in the portfolio, while the multiple achieved was roughly in line with current trading and cash proceeds will be used to delever, adds the analyst, who has a Hold rating and $19 price target on Six Flags shares.