By Paul A. Harris
Portland, Ore., March 30 – Churchill Downs Inc. priced an upsized $1.2 billion issue of eight-year senior notes (B1/B) at par to yield 5¾% in a Wednesday drive-by, according to market sources.
The issue size increased from $900 million.
The yield printed at the tight end of the 5¾% to 6% yield talk. Initial guidance was in the 6% area.
The deal was playing to $3 billion of demand, according to a sellside source.
J.P. Morgan Securities LLC was at the left of a syndicate of bookrunners that also included BofA Securities Inc., Fifth Third Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and Capital One Securities Inc.
The notes were sold via CDI Escrow Issuer Inc.
The Louisville, Ky.-based gaming company plans to use the proceeds plus proceeds from senior secured credit facilities to acquire all of the assets of Peninsula Pacific Entertainment LLC.
The proceeds will be escrowed pending closure of the acquisition.
| Issuer: | CDI Escrow Issuer Inc.
|
| Amount: | $1.2 billion, increased from $900 million
|
| Issue: | Senior notes
|
| Maturity: | April 2, 2030
|
| Bookrunners: | J.P. Morgan Securities LLC, BofA Securities Inc., Fifth Third Securities Inc., PNC Capital Markets LLC, U.S. Bancorp Investments Inc., Wells Fargo Securities LLC and Capital One Securities Inc.
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Spread: | 335 bps
|
| First call: | April 1, 2025 at 102.875
|
| Trade date: | March 30
|
| Settlement date: | April 13
|
| Ratings: | Moody's: B1
|
| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 5¾% to 6%
|
| Marketing: | Drive-by
|
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