Oliver Racing to increase Indiana Downs stake

Oliver Racing LLC, Indiana Downs' majority owner, is seeking to increase its interest in the Shelbyville track. In documents filed with the Indiana Horse Racing Commission, Oliver Racing will pay $53.5 million for a 34 percent interest in the track, raising its ownership stake to 97 percent. The South Bend, Ind.-based owner would purchase the stake currently held by LHT Capital LLC, led by Paul Estridge Jr. and his father, Paul Sr.

According to a story posted Saturday, August 4 on the Indianapolis Business Journal’s website, a binding term sheet between the two owners was filed July 18. It is set to expire August 10 if state regulators don’t approve the sale. Earlier this year LHT Capital offered to purchase the majority stake held by Oliver Racing. At the time the Estridges’ proposed $60 million in cash and a $30 million subordinated note, valued at $70 at maturity, for the 63 percent stake. The offer was declined.

The story goes on to say that Oliver Racing intends to raise $545 million in funding for its racino project. Ownership has hired Jeffries & Co., a New York-based investment bank to raise the funds. If successful, Oliver Racing would have $241.5 million at its disposal for the project after buying out LHT Capital and paying the $250 million in licensing fees to operate 2,000 slot machines. State statute requires license holders to spend a minimum $100 million on a permanent slots facility.

« Back