Churchill Downs Incorporated Closes Amendment to Extend Maturity Date of its Revolving Credit Facility and Term Loan A Facility
Churchill Downs announced an extension to the maturity dates of its revolving credit facility and term loan A facility, pushing the due date from 2027 to 2029. This move aims to provide the company with more financial flexibility. The amendment involves several changes to the existing senior secured credit agreement, although specific alterations were not detailed. The announcement was made on July 03, 2024, and is expected to positively impact CDI's financial stability and operational planning.
- Extended maturity date of revolving credit facility and term loan A facility from 2027 to 2029.
- Increased financial flexibility for the company.
- None.
Extending the **maturity date of its revolving credit facility and term loan A facility** from 2027 to 2029 significantly impacts **Churchill Downs Incorporated's (CDI)** financial strategy. This extension provides the company with a more extended period to utilize its credit lines, which can be particularly beneficial for managing **cash flow** and financing future projects. A revolving credit facility is a type of loan where the borrower can withdraw, repay and borrow again, which offers flexibility. Term Loan A typically includes scheduled periodic payments of principal and interest, making this extension a strategic move to enhance liquidity and financial stability.
From a **financial stability** viewpoint, extending the maturity dates can help **CDI** manage its long-term debt more efficiently, potentially reducing pressure on short-term financial obligations. Investors should consider that such moves could be aimed at **supporting upcoming capital expenditures** or strategic initiatives, which may drive future growth. However, it's essential to keep an eye on the overall debt levels and interest rates associated with these credit facilities, as they can affect profitability.
For retail investors, understanding the implications of such financial maneuvers is crucial. It showcases the company's proactive steps towards maintaining a healthy financial posture, which might be seen positively, especially in uncertain economic times. However, it's also a signal to monitor the company’s debt management closely.
LOUISVILLE, Ky., July 03, 2024 (GLOBE NEWSWIRE) -- Churchill Downs Incorporated (“CDI” or “the Company”) (Nasdaq: CHDN) announced today that CDI successfully closed an amendment of its senior secured credit agreement to extend the maturity date of its revolving credit facility and term loan A facility from 2027 to 2029 and to make certain other changes to its existing credit agreement.
About Churchill Downs Incorporated
Churchill Downs Incorporated (“CDI”) (Nasdaq: CHDN) has been creating extraordinary entertainment experiences for over 150 years, beginning with the company’s most iconic and enduring asset, the Kentucky Derby. Headquartered in Louisville, Kentucky, CDI has expanded through the development of live and historical racing entertainment venues, the growth of the TwinSpires horse racing online wagering business and the operation and development of regional casino gaming properties. www.churchilldownsincorporated.com/
This news release contains various “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by the use of terms such as “anticipate,” “believe,” “could,” “estimate,” “expect,” “intend,” “may,” “might,” “plan,” “predict,” “project,” “seek,” “should,” “will,” “scheduled,” and similar words or similar expressions (or negative versions of such words or expressions), 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 following: the occurrence of extraordinary events, such as terrorist attacks, public health threats, civil unrest, and inclement weather, including as a result of climate change; the effect of economic conditions on our consumers' confidence and discretionary spending or our access to credit, including the impact of inflation; additional or increased taxes and fees; the impact of any pandemics, epidemics, or outbreaks of infectious diseases, including possible new variants of COVID-19, and related economic matters on our results of operations, financial conditions and prospects; lack of confidence in the integrity of our core businesses or any deterioration in our reputation; loss of key or highly skilled personnel, as well as general disruptions in the general labor market; the impact of significant competition, and the expectation that competition levels will increase; changes in consumer preferences, attendance, wagering, and sponsorships; risks associated with equity investments, strategic alliances and other third-party agreements; inability to respond to rapid technological changes in a timely manner; concentration and evolution of slot machine and historical racing machine (HRM) manufacturing and other technology conditions that could impose additional costs; failure to enter into or maintain agreements with industry constituents, including horsemen and other racetracks; inability to successfully focus on market access and retail operations for our TwinSpires sports betting business and effectively compete; online security risk, including cyber-security breaches, or loss or misuse of our stored information as a result of a breach including customers’ personal information could lead to government enforcement actions or other litigation; reliance on our technology services and catastrophic events and system failures disrupting our operations; inability to identify, complete, or fully realize the benefits of our proposed acquisitions, divestitures, development of new venues or the expansion of existing facilities on time, on budget, or as planned; difficulty in integrating recent or future acquisitions into our operations; cost overruns and other uncertainties associated with the development of new venues and the expansion of existing facilities; general risks related to real estate ownership and significant expenditures, including risks related to environmental liabilities; personal injury litigation related to injuries occurring at our racetracks; compliance with the Foreign Corrupt Practices Act or other similar laws and regulations, or applicable anti-money laundering regulations; payment-related risks, such as risk associated with fraudulent credit card or debit card use; work stoppages and labor problems; risks related to pending or future legal proceedings and other actions; highly regulated operations and changes in the regulatory environment could adversely affect our business; restrictions in our debt facilities limiting our flexibility to operate our business; failure to comply with the financial ratios and other covenants in our debt facilities and other indebtedness; increases to interest rates (due to inflation or otherwise), disruption in the credit markets or changes to our credit ratings may adversely affect our business; increase in our insurance costs, or inability to obtain similar insurance coverage in the future, and any inability to recover under our insurance policies for damages sustained at our properties in the event of inclement weather and casualty events; and other factors described under the heading “Risk Factors” in our most recent Annual Report on Form 10-K and in other filings we make with the Securities and Exchange Commission.
We do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
Investor Contact: Sam Ullrich
(502) 638-3906
Sam.Ullrich@kyderby.com
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