Churchill Downs debt refinancing extended the maturity of the company’s revolving credit facility and Term Loan A to 2031 while adding a new $500 million senior secured Term Loan B due in 2033.
Churchill Downs Incorporated (NASDAQ: CHDN) said the new loan carries interest at the secured overnight financing rate plus 1.75 percentage points and was issued at 99.875% of face value.
Churchill Downs Debt Refinancing Pushes Out Maturities
The amended revolving facility and Term Loan A previously matured in 2029. Their new pricing remains tied to SOFR plus a spread that varies with the company’s consolidated net leverage ratio, according to Churchill Downs’ official SEC filing.
Extending the maturities reduces near-term refinancing pressure but does not eliminate the debt. The cost of the floating-rate facilities can also change with benchmark rates and leverage, leaving interest expense sensitive to both monetary conditions and operating performance.
Proceeds from the new Term Loan B will repay the existing Term Loan B, reduce revolver borrowings, cover transaction fees and support working capital and general corporate purposes. The $500 million headline amount therefore should not be treated entirely as new growth capital.
Company Also Plans to Redeem 2027 Notes
Churchill Downs previously issued a conditional notice to redeem all of its 5.50% senior notes due in 2027 on October 19. The company expects to fund that redemption with borrowings under the revolving credit facility.
That step would remove another near-term maturity while shifting part of the capital structure toward floating-rate bank debt. The net effect on annual interest expense will depend on SOFR, the applicable credit spreads and the amount outstanding on the revolver.
The company operates the Kentucky Derby, historical racing-machine venues and casinos. Its cash flows must support both the refinanced obligations and continued investment in racing and gaming properties.
The facility amendments and new Term Loan B have closed, while the note redemption remains scheduled and conditional under its notice. Future quarterly filings will show the resulting debt balance, weighted borrowing cost and leverage ratio after the transactions are reflected in the accounts.
