Speedway enters facility amendment to cut revolver to $300 million

By Jennifer Chiou

New York, July 17 - Speedway Motorsports Inc. entered into an amended and restated credit facility on Tuesday, effectively reducing its revolving credit facility to $300 million from $500 million, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent. Wachovia Bank, NA and JPMorgan Chase Bank, NA are the syndication agents. SunTrust Bank is documentation agent with Banc of America Securities LLC, Wells Fargo Securities, LLC, J.P. Morgan Securities, Inc. and SunTrust Robinson Humphrey, Inc. as joint lead arrangers and joint book managers.

The new three-year senior secured revolver has a $75 million sublimit available for letters of credit and a sublimit of up to $10 million available for swing line loans.

Amounts under the loan will bear interest at Libor plus 250 basis points to 375 bps.

Speedway is also required to pay a commitment fee equal to a margin ranging from 35 bps to 60 bps.

The revolving commitments may be increased to up to $150 million if Speedway is able to secure additional commitments from lenders or other financial institutions.

Borrowings under the revolver may be used to refinance existing debt of the company and its subsidiaries, finance working capital needs, letter-of-credit needs, general corporate needs, permitted investments as well as the acquisition of additional motor speedways and related businesses.

The amended credit agreement requires the company to maintain a consolidated leverage ratio of no more than 3.75 to 1.00 and after June 30, 2010, no more than 3.50 to 1.00; a consolidated net worth as of the last day of each fiscal quarter of at least $718 million; a minimum consolidated capital charges coverage ratio of 2.50 to 1.0, with a step-up to 2.75 to 1.0 with respect to the fiscal quarters ending June 30, 2010 and Sept. 30, 2010, and with a further step-up to 3.0 to 1.0 beginning with the fiscal quarter ending Dec. 31, 2010; and a maximum consolidated senior leverage ratio of 2.50 to 1.0.

Also on Tuesday, the company entered into an amended pledge agreement that granted lenders first-priority liens and security interests in all shares of capital stock.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.