Churchill Downs amends loan, allowing for acquisition, changing leverage ratio, pricing grid

By Sara Rosenberg

New York, Oct. 20 - Churchill Downs Inc. amended its credit facility to allow for the acquisition of Fair Grounds Corp., changing the leverage ratio covenant (see table 1) and modifying the pricing grid for the $200 million revolver (see table 2), according to an 8-K filed with the Securities and Exchange Commission Wednesday.

The Fair Grounds assets were added to the collateral base of the loan.

Bank One is the agent on the facility, which was amended on Oct. 14.

Churchill Downs is a Louisville, Ky., horse racing company.

Table 1: Leverage Ratio

Period Leverage Ratio

Oct. 14, 2004 through June 29, 2005 5.00-to-1.0

June 30, 2005 through June 29, 2006 4.25-to-1.0

June 30, 2006 through June 29, 2007 3.75-to-1.0

June 30, 2007 and thereafter 3.25-to-1.0

Table 2: Pricing Grid

Leverage Ratio Libor Rate Commitment Fee

Less than 2.00-to-1.00 1.25% 0.25%

Less than 2.50-to-1.00 but greater than 2.00-to-1.00 1.50% 0.30%

Less than 3.00-to-1.00 but greater than 2.50-to-1.00 1.75% 0.375%

Less than 3.50-to-1.00 but greater than 3.00-to-1.00 2.25% 0.50%

Less than 4.00-to-1.00 but greater than 3.50-to-1.00 2.50% 0.50%

Less than 4.50-to-1.00 but greater than 4.00-to-1.00 2.75% 0.50%

Greater than 4.50-to-1.00 3.00% 0.50%

© 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.