Dover Motorsports redeems $11.9 million of bonds

By Angela McDaniels

Seattle, Oct. 12 - Dover Motorsports, Inc. has redeemed $11.9 million of its bonds for $14.6 million, plus accrued interest.

The transaction represented 67% of its outstanding bonds, which the motorsport promoter issued through the Southwestern Illinois Development Authority.

The weighted average interest rate on these bonds was 9.18%, with maturities ranging from Aug. 1, 2008 to Aug. 1, 2017.

A total of $5.8 million of Development Authority bonds remain outstanding.

Financing for this transaction was provided by available cash and borrowings under Dover's bank line of credit, which has been expanded to $80 million and currently provides funds at interest rates between 5.27% and 6.50%. Dover's fourth quarter 2005 results will reflect the premium paid on the redemption.

Dover Motorsports is a Dover, Del., promoter of motorsports events.

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