Churchill / Saratoga Deal Closes

Published: October 5, 2015 12:04 pm EDT

It was announced lat last week that Churchill Downs Incorporated (CDI) and Saratoga Harness Racing, Inc. (SHRI) have completed the previously-announced transaction whereby CDI has acquired a 25 per cent membership interest in Saratoga Casino Holdings, LLC (SCH) for approximately $24.8 million.

SCH is a newly formed entity that includes Saratoga Casino and Raceway in Saratoga Springs, N.Y. and a 50 per cent interest in a joint venture with Delaware North Companies to manage the Gideon Putnam Hotel and Resort in Saratoga Springs, N.Y. Saratoga Casino and Raceway includes the $40 million hotel expansion under construction and scheduled to open late spring 2016. The purchase price remains subject to final adjustments for SCH's working capital related to the transferred New York operations.

Given that regulatory approvals for the transfer of SHRI's controlling interest in Saratoga Casino Black Hawk in Black Hawk, Colo. are expected to require several more months, CDI and SHRI have amended their purchase agreement to split the closing of their transaction for SHRI's New York and Colorado properties. Upon receipt of applicable approvals from the Colorado Division of Gaming, SHRI will contribute its controlling interest in Saratoga Casino Black Hawk in Black Hawk, Colo. to SCH. At such time, CDI will pay the remainder of the purchase price to SHRI of approximately $6.4 million for CDI's pro-rata ownership of Colorado operations, subject to adjustments for working capital.

(With files from CDI and SHRI)

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