Speedway $250 million loan spread ranges from Libor plus 175-275 bps

By Sara Rosenberg

New York, Feb. 2 - Speedway Motorsports Inc.'s new $250 million four-year senior secured credit facility has pricing that can range from Libor plus 175 basis points to 275 bps based on leverage, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

In addition, there is a commitment fee that can range from 35 bps to 55 bps based on leverage as well.

The facility consists of a $100 million revolver and a $150 million term loan that can be drawn at anytime up to Sept. 30.

Bank of America, Wells Fargo, JPMorgan and SunTrust acted as the joint lead arrangers and bookrunners on the deal that was completed on Jan. 28.

Financial covenants include a consolidated total leverage ratio, a consolidated net worth requirement and a consolidated interest coverage ratio.

There is a $50 million accordion feature.

Proceeds are being used to refinance existing debt and are available for working capital and general corporate purposes.

Speedway Motorsports is a Concord, N.C.-based marketer and promoter of motorsports entertainment in the United States.

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