Churchill Downs Incorporated announced the closing of an amendment to its revolving credit facility. The amendment, which was approved by the Company's Board of Directors in April, received regulatory approval on May 16, 2013. The amendment is effective concurrently with the closing.
The five-year amendment to CDI's bank revolver, maturing in May of 2018, increases the company's borrowing capacity from $375 million to $500 million. It also includes an 'accordion feature' that allows the company, under certain circumstances, to increase the secured borrowing capacity up to an additional $225 million. Additionally, the amendment provides a two-tiered financial leverage covenant with leverage up to 5.0 times under certain conditions.
The interest rates applicable to borrowings are LIBOR-based plus a 'spread' of 1.125% to 3.0% based on the company's total leverage ratio. It also offers a reduced pricing schedule for outstanding borrowings and commitment fees across all leverage pricing levels.
"This five year amendment improves our covenants and restrictions, increases our bank revolver capacity to $500 million and provides greater flexibility in our capital structure as we continue to grow the company," said Bill Mudd, executive vice president and chief financial officer.
Churchill Downs Incorporated, headquartered in Louisville, KY, owns and operates the world-renowned Churchill Downs Racetrack, home of the Kentucky Derby and Kentucky Oaks, as well as racetrack and casino operations and a poker room in Miami Gardens, Fla.; racetrack, casino and video poker operations in New Orleans, La.; racetrack operations in Arlington Heights, Ill.; a casino resort in Greenville, Miss.; as well as a casino hotel in Vicksburg, Miss.; CDI also owns the country's premier online wagering company, TwinSpires.com; the totalisator company, United Tote; Luckity.com, offering fun games online for a chance to win cash prizes; Bluff Media, an Atlanta-based multimedia poker company; and a collection of racing-related telecommunications and data companies. In addition, CDI's 50 percent owned joint venture, Miami Valley Gaming and Racing LLC, is currently constructing a video lottery terminal and harness racing facility in southwest Ohio.