Racetrack and casino operator Churchill Down said Monday it was repurchasing 1 million shares of its common stock from an affiliate of The Duchossois Group, a Chicago-based privately held investment firm.
In a statement, the Louisville-based company said it would pay $193.94 per share through a privately negotiated transaction, a total of more than $193.9 million. The company, which owns the iconic racetrack that is home to the Kentucky Derby and seven commercial casinos, said it signed an amendment to its credit agreement, increasing certain borrowing from $26 million to $226 million to pay for the transaction.
Churchill Downs said it will repurchase the shares using available cash and borrowings.
The repurchase transaction was authorized by the Churchill Downs board and is separate from the $147.1 million remaining under the company’s existing share repurchase plan.
Churchill Downs operates three pari-mutuel gaming venues with approximately 3,050 historical racing machines in Kentucky. The company’s online gaming and sports betting arm is TwinSpires.com, which also operates seven retail sportsbooks.
Howard Stutz is the executive editor of CDC Gaming. He can be reached at hstutz@cdcgaming.com. Follow @howardstutz on Twitter.
