Deals
Kentucky Derby Racetrack Owner Selling Junk Bonds for M&A
- Churchill Downs is buying Peninsular assets for $2.5 billion
- Early pricing discussions on the notes are in the 6% area
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Churchill Downs Inc., owner and operator of the racetrack that hosts the annual Kentucky Derby, is tapping the U.S. high-yield bond market for $900 million to help finance its asset purchase of Hard Rock Sioux City-owner Peninsula Pacific Entertainment LLC, according to a statement Wednesday.
The notes are due in eight years, with early pricing discussions in the range of 6%, according to a person familiar with the matter who asked not be identified because they are not authorized to speak on the matter. The bonds are rated B1/B+, the person said, four steps into junk territory.