Churchill Downs Inc Secures $500M Loan

By Greg Peters • Monday, September 28 10:53 • Permanent Link

Churchill Downs Incorporated said it closed an amended and extended credit facility and completed a new $500 million term loan B due 2033.

The company said the amendment pushed the maturity on its revolving credit facility and term loan A from 2029 to 2031. Borrowings under that amended facility will carry a SOFR-based rate tied to CDI’s total net leverage ratio.

The new term loan B was issued at 99.875% of principal and carries interest at SOFR plus 175 basis points. CDI said it plans to use the proceeds to repay outstanding term loan B borrowings, repay revolving loans, cover transaction fees and expenses, and support working capital and other general corporate purposes.

CDI also said it issued a conditional redemption notice on September 18 to call its 5.50% senior notes due 2027, with redemption scheduled for October 19. The company said it intends to fund that redemption through its revolving credit facility. Following these announcements, the company's shares moved 0.45%, and are now trading at a price of $79.77. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.