Churchill
Downs Completes Hollywood Park Sale
Churchill Downs Incorporated
("CDI" or "Company") and
Bay Meadows Land Company LLC ("BMLC")
today announced that CDI has completed the sale
of Hollywood Park racetrack and surrounding
acreage at the Inglewood, Calif., site to Hollywood
Park Land Company ("HPLC"), an affiliate
of BMLC, for $257.5 million. CDI will use proceeds
from the sale to pay down debt.
The $260 million sale price announced
on July 6 was reduced at closing by $2.5 million
to cover the costs of addressing certain physical
conditions at the property.
Over the next three years, CDI will distribute
the Hollywood Park simulcast signal through
its Churchill Downs Simulcast Network ("CDSN").
CDSN will also distribute the simulcast signal
for BMLC's racetrack in Northern California,
Bay Meadows. CDI will have an option to reinvest
in Hollywood Park should significant gaming
activities become available at Hollywood.
CDI acquired Hollywood Park in September 1999
for $140 million from Hollywood Park Inc., which
now does business as Pinnacle Entertainment
Inc. Since that time, CDI has operated two race
meets annually on the 238-acre site and leased
space to Pinnacle Entertainment for the operation
of a card club.
Hollywood Park Racing Association ("HPRA"),
the HPLC affiliate that will conduct racing
operations, has received racing dates from the
California Horse Racing Board and will offer
97 days of live racing at Hollywood Park in
2006, subject to the completion of further licensing
requirements. HPRA has committed to continuing
live racing at Hollywood Park for a minimum
of three years and will aggressively pursue
legislative changes to improve economic conditions
for the horse racing industry in California.
HPLC will also seek entitlements from the City
of Inglewood to permit alternative uses for
the current Hollywood Park racetrack site, in
the event that efforts to seek authorization
for expanded gaming activities at California
racetracks are unsuccessful.
Hollywood Park is located 11 miles southwest
of downtown Los Angeles and three miles from
Los Angeles International Airport. The racetrack
offers live racing during traditional spring/summer
and autumn meets. Hollywood Park will conduct
its 2005 Autumn Meet from Nov. 9 through Dec.
19. The racetrack also conducts simulcast wagering
on site when it is not offering live racing.
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