(edited press release)
Churchill Downs Inc. announced Dec. 22 it has amended its revolving credit facility while increasing the borrowing capacity from $120 million to $275 million.
The four year amendment replaces an agreement from 2005 which was due to expire in September 2010. According to the release, the facility will be used to refinance existing indebtedness, for working capital, for acquisitions by CDI and its subsidiaries, and for general corporate purposes.
Borrowings under the facility will bear interest at a LIBOR-based rate per annum plus an applicable percentage ranging from 2-3.5%. The facility also provides for a $100 million accordion feature exercisable during the term of the agreement. The guarantors continue to be a majority of the company’s wholly-owned subsidiaries.
J.P. Morgan Securities and PNC Capital Markets acted as the joint lead arrangers and book-runners. Branch Banking & Trust, U.S. Bank, Fifth Third Bank, and Wells Fargo are also participating in the facility.
“We are extremely pleased by the positive reception and ongoing confidence the banking community has in our company. This agreement reflects our financial strength and ensures we have the financial flexibility to execute our growth strategy.” said Bill Mudd, chief financial officer of CDI.