Moody's: Speedway notes Ba2, loan Ba1

Moody's Investors Service said it assigned a Ba2 rating to Speedway Motorsports, Inc.'s proposed $100 million add-on to its guaranteed senior unsecured notes due 2019 and a Ba1 rating to its proposed $350 million guaranteed senior secured credit facility.

Moody's also affirmed Speedway's Ba1 corporate family and probability of default ratings and SGL-3 speculative-grade liquidity rating.

The outlook is stable.

Moody's said Speedway plans to use the net proceeds from the $100 million add-on to repay the $100 million remaining balance on its existing term loan.

It plans to use the net proceeds from a new $250 million delayed draw term loan as well as revolver borrowings and/or existing cash to fund the redemption of its $275 million senior unsecured notes due 2016, the agency added.

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