CDI Repurchases 944,756 Duchossois Shares
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Churchill Downs Inc. announced after the close of trading Nov. 19 that it has repurchased nearly one milliion shares of its common stock from The Duchossois Group Inc. in a privately negotiated transaction.
The aggregate purchase price was $138.1 million, which represents a share price of $146.13 for the 944,756 shares based on the average of the 20-day trailing closing price through Nov. 18. Churchill stock closed trading on Thursday at $144.38 a share, down $1.04 (0.72%).
The Duchossois family said the selling of the stock was done in an effort to increase diversification. TDG noted that the Duchossois family is still the largest shareholder in CDI, which has seen its stock price skyrocket from $37.95 five years ago.
"The Duchossois family is strongly committed to Churchill Downs and we are excited to remain its largest shareholder with over two million shares after this transaction is completed," TDG chief executive officer Craig Duchossois said in a release. "This transaction is simply a result of our family's ongoing estate planning and desire for increased diversification, particularly in light of the value to which our shareholdings in Churchill Downs has grown over time."
CDI's board of directors authorized the transaction under its existing $150 million share repurchase plan that was announced Oct. 28, 2015. After this transaction is completed, CDI will have $11.9 million remaining under its existing share repurchase plan. CDI repurchased the shares using available cash and borrowings under its senior secured credit facility.
"We appreciate the opportunity to facilitate this transaction with the Duchossois family," CDI chief executive officer Bill Carstanjen said. "In addition to this being accretive to CDI's earnings per share, our company's free cash flow generation and strong balance sheet make this an opportune time for us to complete this transaction under our existing share repurchase plan.
"The Duchossois family has been a long-time, passionate shareholder in Churchill Downs and we look forward to continuing our relationship."