Churchill Downs explores sale of nine regional gaming properties
Properties in Florida, Indiana, Iowa, Maine, Maryland, Mississippi, New York, and Pennsylvania are under evaluation.
US.- Churchill Downs Incorporated is contemplating the sale of nine regional gaming properties, it has revealed in a Form 8-K filed with the Securities and Exchange Commission. The company has engaged Macquarie Capital to assist with the process.
The properties under evaluation are Calder Casino in Florida, Terre Haute Casino Resort in Indiana, Hard Rock Hotel & Casino in Iowa, Oxford Casino Hotel in Maine, Ocean Downs Casino and Racetrack in Maryland, Harlow’s Casino Resort and Spa and Riverwalk Casino Hotel in Mississippi, del Lago Resort and Casino in New York, and Presque Isle Downs and Casino in Pennsylvania.
Bill Carstanjen, chief executive officer, said during the company’s results conference call that sales are expected to occur individually or in small bundles based on buyer interest. Any proceeds would be used to reduce leverage, reinvest selectively in Churchill Downs Racetrack and other projects and fund share repurchases.
“We’re selling proven strong assets that ought to fit in other people’s portfolios and other people’s plans, and from our perspective, we’re pleased with the environment and pleased with our plan to take these properties to market,” Carstanjen said.
Churchill Downs stated that it does not plan to sell its historical racing machine properties located in Kentucky, Virginia, and New Hampshire, nor its Fair Grounds-related assets in Louisiana.
The company’s net revenue $980m in the second quarter, a 5 per cent increase over the same period the previous year. The results were driven by the 152nd Kentucky Derby, which saw record all-sources wagering for Derby Week.
