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Six Flags is currently holding over a half million dollars in debt. Now the company wants to offer debt holders common stock to pay for the debt.

The company’s stock (NYSE: SIX) closed Friday at 13 cents a share, down 6 cents.

The debt exchange, announced Friday evening, involves three series of senior notes: notes carrying an 8.875 percent interest rate and due in 2010, notes at 9.75 percent due in 2013 and notes at 9.625 percent due in 2014.

The exchange offer is set to expire June 25.

This would be a potentially bad idea for any one considering the debt to stock tradeoff. Six Flags stock price is abysmal and the company doesn’t look good for the future either.

Jeremy

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