Speedway Motorsports has amended its $300 million credit facility to increase the allowable annual payments of dividends and extend maturities. The motorsports entertainment marketer pursued the amendment after ongoing dialogue with the lead lender Bank of America.
Lauri Wilks, head of investor relations at Speedway, said the sub-limit for letters of credit has increased in addition to the amounts for repurchases of Speedway securities. The sub-limit for letters of credit has gone from $10 million to $75 million and the amount for annual dividends has increased from $17.5 million to $75 million.
The facility, which was set to mature in 2008, comprises a $250 million revolver and a $50 million term loan. Pricing has also been reduced to LIBOR plus 7/8%-1 3/4% from LIBOR plus 2%. Wachovia Bank, SunTrust Robinson Humphrey and Calyon are also lenders in the syndicate. The lead banker is Jim Nash, managing director of B of A's sports finance group.