Attention, those of you who own Six Flags Entertainment Corporation (SIX): SIX has completed a merger with Cedar Fair L.P.; more can be read about the merger here. As a result of this merger, the company has changed ticker symbols to FUN; furthermore, the merger includes a trade of 0.58 shares of FUN for every 1 share of SIX that was previously owned. Because of this agreement, you should sell your shares of FUN on Trade Day, and Transmogrify if necessary.
As part of the process of transmogrifying, you will need to determine the Price of Old Stock. To do this, take the proceeds you receive after selling the shares of FUN and divide them by the total number of shares that you owned of SIX. This value should be approximately $30.30. If the Price of Old Stock is higher than the Average Cost for SIX, than you do not need to transmogrify.
If you do need to transmogrify your position, you will use the Price of Old Stock for SIX that you calculated to run a transmogrification search in Lattco to find a position to transfer the cost basis of SIX into.
Please note: after locating a position to transmogrify into, you will purchase the same number of shares of it that you previously owned of SIX before the merger.
We’re here to help! Here is a link to the Transmogrification document that will tell you step-by-step what to do.
Lattco PRO clients: Please use this link to access the transmogrification document for your accounts. Also, please give us a call after you have purchased shares for your new position and before you sell your options; we will need to make some adjustments to your account to properly reflect the transmogrification.
Lattco AutoPilot clients: At this time, trading screens for Transmogrification are not included in the AutoPilot system. You will need to log into TradeStation to place two orders to complete the Transmogrification process:
- Sell your existing shares of FUN
- Buy the same amount of shares for your new stock that you previously owned of SIX
Once this is complete please notify us and we will adjust your AutoPilot account so that it can suggest the appropriate trades.
If you have any questions, please don’t hesitate to contact us at support@snideradvisors.com or 1-888-6-SNIDER. We’ll be happy to walk you through the process.
