S&P assigns Churchill notes B+

S&P said it rated Churchill Downs Inc.’s planned senior unsecured notes B+ with a 6 recovery rating. The agency also affirmed all the issuer’s ratings and removed them from CreditWatch with negative implications where it placed them on Feb. 23.

“Churchill Downs is acquiring all of P2E's assets in Virginia and New York and the operations of its Sioux City casino property for total consideration of $2.485 billion. It estimates this is a purchase price multiple of less than 9x adjusted EBITDA, including the incremental value from the recent opening and expansion of certain Virginia facilities and the incremental value that Churchill Downs expects to realize from the acquisition of the development rights related to historical horse racing in Virginia,” S&P said in a press release.

The company plans to fund a portion of the purchase with new secured and unsecured debt.

The outlook is negative.

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