Moody's affirms Speedway

Moody's Investors Service said it affirmed Speedway Motorsports, Inc.'s Ba1 corporate family rating, Ba1 Probability of default rating and the Ba2 rating on the senior subordinate notes following the company's announcement that it has agreed to acquire New Hampshire International Speedway from the Bahre family for a $340 million cash purchase price.

Moody's said it anticipated in the rating that Speedway would opportunistically add to its track portfolio, adding that the acquisition enhances Speedway's long-term business prospects by increasing its major track portfolio and the number of Nextel Cup race allotments.

Moody's said it estimates that debt-to-EBITDA leverage will increase from 1.9x for the latest 12 months ended June 30, incorporating Moody's standard adjustments, but remain within the 2.75x level anticipated in the Ba1 rating.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.