Speedway Motorsports Plans $350 Million of Loans After Bond Sale
Speedway Motorsports Inc. (TRK), an owner and operator of NASCAR racetracks, is in talks with lenders for as much as $350 million of loans to replace debt.
The financing would include a $250 million term loan and $100 million revolving credit line maturing in five years, the Concord, North Carolina-based company said today in a regulatory filing.
Standard & Poor’s ranked the proposed credit BBB-, the lowest investment grade, while keeping Speedway’s corporate rating at BB with a stable outlook.
The pact with lenders would have a so-called accordion feature allowing the company to borrow an additional $100 million, according to the filing.
The company, whose racetracks include the Kentucky Speedway, is also offering $100 million of 6.75 percent notes, due in 2019, to pay down $95 million of outstanding credit. The new loans it is seeking would follow the note sale, the company said in the filing.
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