Churchill Downs Repays $600 Million Of 2027 Notes With Revolver Cash, Leaving $700 Million Due In 2028
The Kentucky Derby company also approved a $750 million buyback and a $0.469 annual dividend as its debt maturities climbed to $659 million.
Churchill Downs, which owns Churchill Downs Racetrack, home of the Kentucky Derby, redeemed its $600 million of 2027 senior notes on October 19 using borrowings from its revolving credit line, according to its third-quarter 10-Q filed Wednesday. The company also approved a new $750 million buyback and declared a higher annual dividend.
Debt pushed into the current column
Current maturities of long-term debt stood at $659 million at September 30, against $63 million at December 31, 2025, even after the company took on a new $500 million Term Loan B due 2033. The 2027 notes, which carry a 5.50% rate and were due April 1, 2027, make up most of that figure.
The company issued a conditional redemption notice on September 18 and paid them off with 2031 Revolver borrowings. Revolver debt was $79 million at quarter-end, down from $657 million at the end of 2025. Borrowing capacity under the revolver was $1.1 billion after $10 million of letters of credit.
The Term Loan B was issued at 99.875% of principal and bears interest at SOFR plus 175 basis points. Proceeds went to repay the 2028 Term Loan B-1 and part of the revolver.
A springing maturity clause
On September 25 the company extended its revolver and Term Loan A from July 2029 to September 2031. The extension carries a "springing maturity": it moves earlier if notes due before September 25, 2031 are not refinanced or extended at least 91 days before their stated maturity.
The next such notes are $700 million of 4.75% senior notes due January 15, 2028. The prior quarter's 10-Q said the company was exploring options to fund upcoming note maturities, and the new filing still carries that sentence, listing cash, operating cash flow, revolver capacity and debt markets.
Buyback up, dividend raised
The board approved the $750 million repurchase program on October 27. It includes, and does not add to, the $306 million left under the prior authorization, the company said in its earnings release. The company bought back 570,169 shares for $48 million in the third quarter.
The annual dividend of $0.469 a share is up 7%, payable January 5, 2027 to holders of record December 4, 2026. Third-quarter net revenue rose to $696 million from $683 million, and net income attributable to the company was $80 million versus $38 million a year earlier, when an $85 million non-cash impairment on Chasers gaming rights hit. Net bank leverage was 3.8x.
On July 29, the operator of racing, historical racing and casino businesses and the TwinSpires online wagering unit said it was weighing the sale of nine regional casinos and gaming properties it owns outright. Together they generate $280 to $300 million in annual Adjusted EBITDA.
The company holds its earnings call Thursday at 9 a.m. ET.
Sources
- 10-Q Filing — Churchill Downs (CHDN) — SEC EDGAR
- 10-Q Filing — Churchill Downs (CHDN), Q2 FY2026 filed 2026-07-29 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, ex991pressrelease10-28x26.htm) — Churchill Downs, filed 2026-10-28 — SEC EDGAR
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- U. S. S. Valor Tabbed 8-1 Individual Favorite In Pool 1 Of Kentucky Derby Future Wager | Miami Herald — miamiherald.com
- The State Of Texas et al v. Churchill Downs Incorporated et al — law360.com
- Balmoral Racing Club, Inc. et al v. Churchill Downs, Incorporated — law360.com
- Churchill Downs Incorporated Reports 2026 Third Quarter — globenewswire.com
