CDI Closes Amendment to Revolving Credit Facility
Increased Borrowing Capacity, Reduced Funding Costs
LOUISVILLE, Ky., May 17, 2013 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated
(Nasdaq:CHDN) (CDI or the Company) announced today the closing of an amendment
to its revolving credit facility. The amendment, which was approved by the
Company's Board of Directors in April, received regulatory approval on May 16,
2013. The Amendment is effective concurrently with the closing.
The five-year amendment to CDI's bank revolver, maturing in May of 2018,
increases the Company's borrowing capacity from $375 million to $500 million.
It also includes an 'accordion feature' that allows the Company, under certain
circumstances, to increase the secured borrowing capacity up to an additional
$225 million. Additionally, the amendment provides a two-tiered financial
leverage covenant with leverage up to 5.0 times under certain conditions.
The interest rates applicable to borrowings are LIBOR-based plus a 'spread' of
1.125% to 3.0% based on the Company's total leverage ratio. It also offers a
reduced pricing schedule for outstanding borrowings and commitment fees across
all leverage pricing levels.
"This five year amendment improves our covenants and restrictions, increases
our bank revolver capacity to $500 million and provides greater flexibility in
our capital structure as we continue to grow the company," said Bill Mudd,
Executive Vice President and Chief Financial Officer.
ABOUT CHURCHILL DOWNS INCORPORATED
Churchill Downs Incorporated (CDI) (Nasdaq:CHDN), headquartered in Louisville,
Ky., owns and operates the world-renowned Churchill Downs Racetrack, home of
the Kentucky Derby and Kentucky Oaks, as well as racetrack and casino
operations and a poker room in Miami Gardens, Fla.; racetrack, casino and
video poker operations in New Orleans, La.; racetrack operations in Arlington
Heights, Ill.; a casino resort in Greenville, Miss.; as well as a casino hotel
in Vicksburg, Miss.; CDI also owns the country's premier online wagering
company, TwinSpires.com; the totalisator company, United Tote; Luckity.com,
offering fun games online for a chance to win cash prizes; Bluff Media, an
Atlanta-based multimedia poker company; and a collection of racing-related
telecommunications and data companies. In addition, CDI's 50 percent owned
joint venture, Miami Valley Gaming and Racing LLC, is currently constructing a
video lottery terminal and harness racing facility in southwest Ohio.
Additional information about CDI can be found online at
Information set forth in this news release contains various "forward-looking
statements" within the meaning of Section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. The Private Securities
Litigation Reform Act of 1995 (the "Act") provides certain "safe harbor"
provisions for forward-looking statements. All forward-looking statements are
made pursuant to the Act.
The reader is cautioned that such forward-looking statements are based on
information available at the time and/or management's good faith belief with
respect to future events, and are subject to risks and uncertainties that
could cause actual performance or results to differ materially from those
expressed in the statements. Forward-looking statements speak only as of the
date the statement was made. We assume no obligation to update forward-looking
information to reflect actual results, changes in assumptions or changes in
other factors affecting forward-looking information. Forward-looking
statements are typically identified by the use of terms such as "anticipate,"
"believe," "could," "estimate," "expect," "intend," "may," "might," "plan,"
"predict," "project," "should," "will," and similar words, although some
forward-looking statements are expressed differently. Although we believe that
the expectations reflected in such forward-looking statements are reasonable,
we can give no assurance that such expectations will prove to be correct.
Important factors that could cause actual results to differ materially from
expectations include: the effect of global economic conditions, including any
disruptions in the credit markets; a decrease in consumers' discretionary
income; the effect (including possible increases in the cost of doing
business) resulting from future war and terrorist activities or political
uncertainties; the impact of increasing insurance costs; the impact of
interest rate fluctuations; the financial performance of our racing
operations; the impact of gaming competition (including lotteries, online
gaming and riverboat, cruise ship and land-based casinos) and other sports and
entertainment options in the markets in which we operate; our ability to
maintain racing and gaming licenses to conduct our businesses; the impact of
live racing day competition with other Kentucky, Florida, Illinois and
Louisiana racetracks within those respective markets; the impact of higher
purses and other incentives in states that compete with our racetracks; costs
associated with our efforts in support of alternative gaming initiatives;
costs associated with customer relationship management initiatives; a
substantial change in law or regulations affecting pari-mutuel and gaming
activities; a substantial change in allocation of live racing days; changes in
Kentucky, Florida, Illinois or Louisiana law or regulations that impact
revenues or costs of racing operations in those states; the presence of
wagering and gaming operations at other states' racetracks and casinos near
our operations; our continued ability to effectively compete for the country's
horses and trainers necessary to achieve full field horse races; our continued
ability to grow our share of the interstate simulcast market and obtain the
consents of horsemen's groups to interstate simulcasting; our ability to enter
into agreements with other industry constituents for the purchase and sale of
racing content for wagering purposes; our ability to execute our acquisition
strategy and to complete or successfully operate acquisitions and planned
expansion projects including the effect of required payments in the event we
are unable to complete acquisitions; our ability to successfully complete any
divestiture transaction; market reaction to our expansion projects; the
inability of our totalisator company, United Tote, to maintain its processes
accurately or keep its technology current; our accountability for
environmental contamination; the inability of our Online Business to prevent
security breaches within its online technologies; the loss of key personnel;
the impact of natural and other disasters on our operations and our ability to
obtain insurance recoveries in respect of such losses (including losses
related to business interruption); our ability to integrate any businesses we
acquire into our existing operations, including our ability to maintain
revenues at historic levels and achieve anticipated cost savings; the impact
of wagering laws, including changes in laws or enforcement of those laws by
regulatory agencies; the outcome of pending or threatened litigation; changes
in our relationships with horsemen's groups and their memberships; our ability
to reach agreement with horsemen's groups on future purse and other agreements
(including, without limitation, agreements on sharing of revenues from gaming
and advance deposit wagering); the effect of claims of third parties to
intellectual property rights; and the volatility of our stock price.
CONTACT: Courtney Yopp Norris
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