MUMBAI (Thomson Financial) - Moody's Investors Service said it has placed
Speedway Motorsports Inc.'s (SMI) 'Ba1' corporate family rating on review for
possible downgrade after the company entered into an agreement to acquire
Kentucky Speedway LLC. for about $78.3 million including debt assumed and $7.5
million of contingent payments.
The deal for the Kentucky Speedway LLC property is expected to close in the
third quarter of 2008.
The ratings agency said it will evaluate the incremental revenue, cash flow
benefits to SMI of expanding its track portfolio and the effect on SMI's
leverage and financial profile and the company's plans for additional track
acquisitions and development.
Moody's will consider the effect of the company's plans on its ability to
maintain an adequate liquidity cushion under the covenants in its credit
facility.
TFN.newsdesk@thomson.com
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