Churchill Downs extends and reduces pricing of revolver, term loan A

By Wendy Van Sickle

Columbus, Ohio, Feb. 18 – Churchill Downs Inc. extended and reduced pricing of its $500 million senior secured revolving credit facility and its $188.75 million senior secured term loan A facility, according to a Thursday press release.

Under the amendment to the facilities’ governing credit agreement, both facilities now mature on Feb. 17, 2021. The revolver had been set to mature on May 17, 2018 and the term loan on Dec. 1, 2019.

Along with the extension of the term loan, its amortization schedule was modified, providing for quarterly principal payments throughout the term with a 50% bullet payment due at maturity.

Interest accrues at Libor plus a spread of 112.5 basis points to 250 bps, depending on the company’s total leverage ratio, with the margin initially 187.5 bps.

Previously, the upper limit of the spread was 300 bps, and pricing at each level dropped under the amendment, according to the release.

JPMorgan Chase Bank, NA is the agent.

The revolver continues to have a $225 million accordion feature.

Churchill Downs is a Louisville, Ky.-based owner and operator of racing facilities.

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