Finance

Churchill Downs raises $500m through senior notes offering and term loan

| By Robert Fletcher
Racing and gambling operator Churchill Downs Incorporated (CDI) has raised a total of $500m (£358m/€419m) through a term loan and an offering of senior notes.

Both announced last week, the term loan raised $300m, while the senior notes offering generated $200m, both reaching their original targets.

The notes, which were priced at 103.25% of the principal amount, have an annual interest rate of 4.75% and are due in 2028.

The loan’s interest rate has been set at two percentage points above the London Interbank Offered Rate (LIBOR), a global interest rate standard.

CDI previously stated that it would use proceeds from the notes offering and loan for general corporate purposes, as well as to repay existing debts with its credit facility, and fund “related transaction fees and expenses”.

Last month, CDI reported a loss of $81.9m in 2020 as revenue dropped 207% to $1.05bn.

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