Moody's assigns Speedway loan Ba1

Moody's Investors Service said it affirmed Speedway Motorsports, Inc.'s (SMI) ratings following the company's announcement that it would form a joint venture with International Speedway Corp. (ISC) to acquire Action Performance Companies, Inc. for $245 million in cash.

Moody's also assigned a Ba1 rating to SMI's amended $300 million guaranteed senior secured bank credit facility reflecting the facilities' maturity extension. The outlook remains stable.

The loans consist of a $250 million revolving credit facility due March 2010 and $50 million term loan A due March 2010.

Affirmed ratings include the company's $330 million 6.75% guaranteed senior subordinated notes due June 2013 at Ba2 and Ba1 corporate family rating.

Moody's added the ratings continue to reflect the SMI's high level of event risk, moderate scale of operations, limited geographic diversity, narrow business diversity and potential margin pressure going forward.

The agency said it remains concerned that the company will pursue sizable cash/debt-financed acquisitions particularly with respect to the two remaining independent racetrack properties on the NASCAR circuit.

© 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.