Churchill Downs closes on $200 million revolver

By Sara Rosenberg

New York, April 3 - Churchill Downs Inc. closed on a $200 million five-year revolver that replaces the company's existing $250 million revolver, which was slated to mature in March 2004. Bank One Capital Markets was the lead bank on the deal and PNC Bank Capital Markets was co-lead.

The syndicate contains a total of nine institutions, seven of which were involved in the previous revolver.

The company also closed on $100 million private placement of senior notes.

"We decided that current market conditions presented a good opportunity for us to refinance our borrowings well in advance of their maturity," said Mike Miller, chief financial officer, in a news release. "This refinancing will result in a lower cost of capital and will increase our flexibility to execute our strategic growth plans.

"One of the most immediate uses for these funds will be the Master Plan project now underway to modernize the Churchill Downs racetrack. We will also use these funds for working capital and potential additional acquisitions. Both offerings were oversubscribed, attesting to the quality of our asset base and the high visibility for our business, a positive attribute that is particularly noteworthy in today's uncertain economic environment."

Churchill Downs is a Louisville, Ky., owner and operator of world-renowned horse racing venues throughout the United States.

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