Speedway Motorsports obtains $300 million credit facility

By Sara Rosenberg

New York, May 19 - Speedway Motorsports Inc. closed on a new $300 million credit facility due May 2008. Bank of America was the lead bank on the deal.

The facility consists of a $250 million revolver, which includes a $10 million sub-limit for standby letters of credit and a $10 million sub-limit for borrowings under 15-day swing line loans, and a $50 million term loan.

Amounts outstanding under the facility bear interest at Libor plus 150 to 250 basis points, based upon ratios of funded debt to EBITDA, according to a filing with the Securities and Exchange Commission.

Proceeds were used to refinance the company's existing credit facility. Furthermore, drawings under the facility combined with a completed $230 million notes offering and cash on hand will be used to redeem the company's existing $250 million 8½% senior subordinated notes due 2007.

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

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