Daily News: February 19, 2016

JPMorgan Agents Churchill Downs’ Facility Amendment


Churchill Downs has closed an amendment to its credit agreement with a group of banks led by JPMorgan Chase as agent and collateral agent. The agreement consists of a $500 million senior secured revolving credit facility with a $225 million accordion feature and a $188.75 million senior secured term loan A facility.

The five-year amendment extends the maturity for the facilities to February 17, 2021 and makes the maturities coterminous. Previously, the maturities for the revolving credit facility and term loan A facility were May 17, 2018 and December 1, 2019, respectively. With the maturity extension of the term loan A facility, the amortization schedule was modified, providing for quarterly principal payments throughout the term with a 50% bullet payment due at maturity.

The interest rates applicable to borrowings are LIBOR-based plus a spread, determined by the company’s total leverage ratio. The amendment lowers the upper limit of the applied spread from 3.0% to 2.5%. It also offers a reduced pricing schedule for outstanding borrowings and commitment fees across all leverage pricing levels. The amendment does not alter the Company’s borrowing capacity.

Louisville, KY-based Churchill Downs is a racing, gaming and online entertainment company anchored by its iconic flagship event – The Kentucky Derby.