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Six Flags lenders cutting borrowing rates

GRAND PRAIRIE, Texas (AP) -- Six Flags lenders have agreed to cut its borrowing rates and approved its ability to use some of its cash on hand, potentially for share repurchases.

The lenders will cut its overall borrowing rate by one-half of a percent and approved plans to use up to $200 million of its excess cash on hand for general corporate purposes, including share repurchases.

Six Flags said Tuesday that the lower borrowing rate, excluding costs for the transaction, will save the company approximately $3 million annually in interest costs assuming current market rates.

The amusement park operator, based in Grand Prairie, Texas, has 18 parks across North America.

Shares of Six Flags Entertainment Corp. increased 9 cents to $36.42 by midmorning, in line with broader market trends.