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Churchill Downs Inc.
completed the sale of Hollywood Park racetrack to
Bay Meadows Land Co.
for $257.5 million, the companies announced Friday. The sale calls for Bay Meadows, which operates a track in Northern California, to continue offering live racing at the historic Inglewood track for the next three years, while it pursues legislative action that would allow additional gaming operations, such as slot machines, at the track. A card club now leases space there. Churchill Downs will retain an option to reinvest in the park if gaming is allowed.
Bay Meadows also plans to continue pursuing entitlements from the city of Inglewood for alternative development of the 238-acre site should it not receive approval for the gaming. The sale price reflects a $2.5 million discount from the $260 million price announced in July to cover the costs of “certain physical conditions” on the property, the companies said. Churchill Downs plans to use the proceeds to reduce its debt.
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Diodes Inc.
on Friday priced the secondary offering of 2.5 million shares of common stock. The Westlake Village-based supplier of semiconductors said it will offer 1.75 million new shares and 750,000 shares being sold by Lite-On Semiconductor Corp., the company’s largest stockholder, for $35.75 each. An underwriting syndicate led by UBS Investment Bank was granted the right to purchase an additional 375,000 shares to cover any over-allotments. The company’s shares closed at $35.90 Friday, down 22 cents on Nasdaq.
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Walt Disney Co.
announced in a regulatory filing Friday it will take an after-tax charge of $68 million to cover the value of its investments in aircraft leases it is writing off as a result of Delta Air Lines Inc.’s bankruptcy. Disney said the charge would not result in any cash expenditure but it may have to accelerate tax payments of up to $100 million should the leases be materially modified or the aircraft foreclosed upon by debt holders. The tax payments are already reflected on the company’s balance sheet as a deferred liability, so the payments would not result in any further charge against earnings, Disney said.
