CDI successfully closes $1.2bn senior notes due 2030
Proceeds from the sale will help finance a company deal to purchase assets of Peninsula Pacific Entertainment.
Churchill Downs Incorporated (CDI) has closed an amendment of its senior secured credit agreement. The deal was to extend its existing revolving credit maturity date to 2027 and increase its commitments from $700m to $1.2bn. The company has also closed its $800m senior secured delay draw term loan A due 2029 and its $1,2bn of senior notes due 2030.
The deals are part of the company’s plan to finance a transaction that will acquire all assets of Peninsula Pacific Entertainment (P2E).
Assets included in the deal are P2E’s properties in Virginia and New York, along with the operations of its Sioux City casino.
The purchase agreement is expected to complete by the end of this year, pending approvals from the Virginia Racing Commission, the New York State Gaming Commission and the Iowa Racing & Gaming Commission.
The company will place the proceeds of the proposed offering in an escrow, pending acquisition closing conditions. Once the conditions are met, CDI plans to use those funds, along with other money borrowed to complete its transaction with P2E.
The offer and sale of the notes have not been registered under the Securities Act of 1933, however, but they are being sold only to those who are reasonably believed to be qualified institutional buyers in compliance with Rule 144A.
CDI is a racing, online wagering and gaming entertainment company. It currently operates historical racing machines (HRM) in Kentucky. The company plans to operate in Virginia and Louisiana, pending the closing of the acquisition of Peninsula Pacific Entertainment and the completion of HRM expansion plans for CDI’s 14 off-track betting facilities.
CDI is also the host of the annual Kentucky Derby.
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