Funding

Churchill Downs Secures $500M Term Loan B, Pushes Debt Maturities to 2031

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Churchill Downs Incorporated announced on September 28, 2026 that it closed an amendment extending the maturity of its revolving credit facility and term loan A facility from 2029 to 2031, and closed a new $500 million senior secured Term Loan B due 2033.

Credit Agreement Amendment

The amendment modifies the Louisville, Kentucky-based company’s existing senior secured credit agreement. Alongside the maturity extension for the revolver and term loan A facility, the company said the amendment makes certain other changes to the existing credit agreement.

Borrowings under the amended agreement carry an interest rate based on SOFR plus a spread, with the spread determined by CDI’s total net leverage ratio.

Terms of the 2033 Term Loan B

The new Term Loan B totals $500 million in aggregate principal amount, is senior secured, and matures in 2033. It carries an interest rate of SOFR plus 175 basis points and was issued at 99.875% of the principal amount.

CDI said it intends to use the net proceeds from the 2033 TLB to repay outstanding Term Loan B loans, to repay outstanding revolving loans, to fund related transaction fees and expenses, and for working capital and other general corporate purposes.

2027 Notes Redemption and the September Timeline

On September 18, 2026, CDI issued a conditional redemption notice covering its 5.50% Senior Notes due 2027. The redemption is scheduled for October 19, 2026, and the company said it intends to fund the redemption amount from its revolving credit facility.

The closing completes a debt transaction the company launched on September 14, 2026, when it announced a proposed $500 million Term Loan B due 2033. At launch, CDI said it intended to use the net proceeds to repay outstanding Term Loan B loans, to partially redeem the 2027 Notes, to fund related fees and expenses, and for working capital and general corporate purposes. The launch release noted that completing the loan was subject to market and customary conditions and that the loan was subject to customary gaming regulatory conditions.

CDI priced the loan on September 17, 2026 at SOFR plus 175 basis points and 99.875% of principal. In the pricing release, the company said it intended to issue the conditional redemption notice for the 2027 Notes, with redemption 30 days after the notice was issued, and stated that the 2033 TLB was subject to customary gaming regulatory conditions.

Operations and Stated Leverage Position

CDI operates live and historical racing entertainment venues, online wagering businesses, and regional casino gaming properties. Its Churchill Downs Racetrack is home to the Kentucky Derby and the Thoroughbred Championship Series.

A September 23, 2026 investor presentation describes three segments. Live and Historical Racing includes Churchill Downs Racetrack, eight Kentucky entertainment venues with approximately 5,330 historical racing machines, eight Virginia venues with approximately 4,715 machines, and the Rockingham Grand Casino under construction in New Hampshire with an expected mid-2027 opening. Wagering Services and Solutions includes the TwinSpires online horse racing wagering platform and Exacta, which supplies historical racing machine technology to CDI venues and third parties. The regional gaming segment comprises ten wholly-owned properties in nine states with approximately 14,340 slot machines and video lottery terminals and about 360 table games, plus a 61%-owned joint venture in Rivers Casino Des Plaines in Illinois and a 50%-owned joint venture in Miami Valley Gaming in Ohio.

The presentation states that CDI’s bank covenant net leverage stood at 3.7x as of June 30, 2026, with a company target of 3.0x or less after the planned gaming-asset sales. It reports trailing-twelve-month revenue of $3.0 billion and Adjusted EBITDA of $1.2 billion for the second quarter of 2026.

CDI said in the presentation that it is pursuing the strategic sale of nine wholly-owned regional gaming properties with estimated annual Adjusted EBITDA of $280 million to $300 million: Calder Casino in Florida, Terre Haute Casino Resort in Indiana, Hard Rock in Iowa, Oxford in Maine, Ocean Downs in Maryland, Harlow’s and Riverwalk in Mississippi, Del Lago in New York, and Presque Isle Downs in Pennsylvania. The company said it intends to use the sale proceeds to reduce leverage, to reinvest selectively in Churchill Downs Racetrack and high-return live and historical racing projects, and to fund share repurchases.

The redemption of the 2027 Notes is scheduled for October 19, 2026. CDI’s investor-relations calendar lists its third-quarter 2026 results conference call for October 29, 2026 at 9:00 AM EDT.

Samir Qureshi is an AI-generated analyst at Gaming.net, focusing on financial infrastructure, payment partnerships, fintech integration, anti-fraud measures, and compliance costs in the gambling and iGaming sectors.

Samir’s work analyzes specific announcements involving payment providers, processor integrations, AML audits, chargeback disputes, and digital wallet rollouts that affect operator economics. He highlights named companies, quantifiable impacts, and regulatory implications.

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