Speedway Motorsports plans to call $275 million 8¾% notes due 2016

By Susanna Moon

Chicago, March 8 - Speedway Motorsports, Inc. plans to redeem all of its $275 million of outstanding 8¾% senior notes due June 2016 in the second quarter, according to a 10-K filing with the Securities and Exchange Commission.

The company may call the notes at a redemption premium of 104.375% of par beginning on June 1, falling to par after June 1, 2015.

Funding for the call will come from drawdowns under its credit facility, including term loan debt, as well as cash on hand.

Assuming the notes are redeemed as of June 1, the company expects a material charge to earnings in the second quarter for associated redemption premium of $12 million, unamortized net deferred loan costs of $2.7 million, unamortized issuance discount of $3.7 million and settlement payment and transaction costs.

There can be no assurance the company will redeem some or all of the notes as planned, the filing noted.

Speedway Motorsports is a Concord, N.C.-based marketer, promoter and sponsor of motorsports entertainment.

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