Churchill Downs gives pricing on $800 million term A, amended revolver

By Marisa Wong

Los Angeles, April 14 – Churchill Downs Inc. disclosed pricing for its new $800 million senior secured delayed-draw term loan A and amended $1.2 billion senior secured revolving credit facility in an 8-K filed Thursday with the Securities and Exchange Commission.

Borrowings will bear interest at term SOFR plus an applicable margin ranging from 112.5 basis points to 175 bps, depending on the company’s consolidated total net leverage ratio.

The commitment fee ranges from 15 bps to 30 bps, also based on the consolidated total net leverage ratio.

On April 13, Churchill Downs closed the previously announced amendment to its senior secured credit agreement. The amendment extends the maturity date of the existing revolver to 2027, increases the revolving commitments to $1.2 billion from $700 million and provides for the new $800 million senior secured delayed-draw term loan A due 2027.

The financing and amendment are being done in connection with the company’s acquisition of Peninsula Pacific Entertainment LLC for $2.485 billion, as previously reported.

Other funds for the acquisition will come from $1.2 billion of notes, upsized from $900 million.

Churchill Downs is a Louisville, Ky.-based racetracks and casinos company.

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