U.S.-based speedway operator Speedway Motorsports Inc. (SMI) plans to issue a $100 million add-on to its existing $150 million 6.75% notes due 2019. The company will use proceeds to repay the outstanding balance on the company's existing term loan due 2015. The company also plans to enter into a new $100 million revolving credit facility and a $250 million delayed draw term loan, both due 2018. The company will use the term loan proceeds to help repay the $275 million 8.75% notes due 2016, when they become callable in June 2013. We are placing the ratings on the company's 6.75% senior notes and 8.75% senior notes on CreditWatch with negative implications. We are also rating the company's new credit facility
