Speedway Motorsports to use new delayed-draw loan for note redemption

New York, Jan. 28 – Speedway Motorsports, Inc. said it will borrow from its new $50 million delayed-draw term loan to help fund the redemption of its $250 million of 6¾% senior notes due 2019.

The company announced Wednesday that it will repay the notes on March 13 at a price of 103.375 plus accrued interest up to the redemption date, according to an 8-K filing with the Securities and Exchange Commission.

Funding for the redemption will come from the sale of $200 million of new senior notes due 2023, which priced with a coupon of 5 1/8% at par on Jan. 22, borrowings from the delayed-draw term loan and cash on hand.

Speedway entered into a $300 million amended and restated credit agreement on Dec. 29 via Merrill Lynch, Pierce, Fenner & Smith Inc., Wells Fargo Securities LLC, J.P. Morgan Securities, LLC and SunTrust Robinson Humphrey, Inc. as joint lead arrangers and joint bookrunners.

The new facility includes a five-year $100 million senior secured revolving credit facility, a five-year $150 million senior secured term loan, which was drawn in a single advance on Dec. 29, and a five-year $50 million delayed-draw term loan facility, which may be borrowed in a single advance no later than three months after the closing date.

Speedway is a Concord, N.C., marketer and promotor of motorsports entertainment.

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