IRG Sports + Entertainment™ (IRG) President & CEO, Jason Rittenberry, announced today that the Company has entered into a finance agreement with TPG Specialty Lending (NYSE:TSLX), the publicly traded affiliate of TSSP, the credit and special situations investment platform of TPG. The new credit facility is replacing IRG’s existing debt facilities on all companies, make capital improvements to existing assets owned by the Company and to close on the acquisition of Cordova Dragway Park in Cordova, Illinois (to be rebranded as Cordova International Raceway™ (CIR), that was announced in late 2013. The TPG facility also provides the Company with funds to purchase an additional major motorsports venue, which the Company will announce in the coming weeks.
The addition of Cordova adds to the existing stable of motorsports assets owned by IRG, which includes the 44-year old sanctioning body, the International Hot Rod Association™ (IHRA), previously purchased from Feld Motorsports, and venues Palm Beach International Raceway™ in Jupiter, FL, Memphis International Raceway™ in Memphis, TN and Southwestern International Raceway™ (SWIR) in Tucson, AZ .
A new division in the IRG portfolio for 2014, IRGSE Productions, with subsidiary IHRA Productions was launched this year to produce the Nitro Jam Drag Racing Series television show for MAVTV. This new show will debut on the popular automotive network on November 6, 2014 as a 13-week series.
“The ability to access additional capital allows us to fund and accelerate our growth plans for IRG. We have been aggressive with acquisitions in the past few years,” noted Rittenberry. “This funding will allow us to improve those venues – and complete our planned acquisitions of Cordova and one additional major motorsports venue, in addition to improving our IHRA national tours and introducing new content.”
The Company is now sufficiently capitalized to begin the $10 million in capital improvements with the majority scheduled to be completed in time for the 2015 racing season. The planned capital improvements include:
- Palm Beach International Raceway™ (PBIR) – a clubhouse with pit garages and operations tower on the Road Course, concession and restroom buildings, ingress and egress improvements, additional grandstands for the Road Course, new LED monument signage at entrance
- Memphis International Raceway™ (MIR) – the addition of a 3/8-mile dirt track, restroom and concession remodeling
- Southwestern International Raceway™ (SWIR) – new restroom building and office building, renovated restaurant and pit repairs
- Cordova International Raceway™ (CIR) – new fiber optic timing and LED scoreboards, additional grandstands, resurfacing of the Drag Strip
- IHRA Motorsports™ (IHRA) – additional track preparation equipment and rigs; new lighting, sound and stage equipment; development of new show content and a national touring series; growth of IHRA Productions and new media content
“TPG Specialty Lending looks forward to working with IRG to grow its business over the next few years,” said TPG Specialty Lending Managing Director Thomas Steiglehner.
IRG was represented in the financing by a team of lawyers led by Matthew Pace at Arent Fox LLP in New York, who has been working with the Company for several years in developing the plan for IRG and introduced existing client, TPG, to IRG. TPG Specialty Lending was represented by Schulte Roth & Zabel LLP in New York. Murray Schwartz, Esq. of Karlinsky, LLC in New York and Steve Parson of Shutts Bowen in west Palm Beach, FL represented IRG in the acquisitions of the venues.
In addition to providing financing to the Company, TPG Specialty Lending will join IRG principals Joseph Lubeck, Michael Dezer and the DeBartolo family, along with Rittenberry and Schwartz, on the Board of IRG.
IRG Sports PR
- NASCAR All-Star Race NEWS: #HaleYES You Need to Vote for Justin Haley - April 23, 2024
- Goodyear to Supply Option Tire for Cup All-Star Race - April 23, 2024
- NASCAR, North Wilkesboro Speedway Announce 2024 NASCAR All-Star Race Format - April 23, 2024