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DAYTONA BEACH, Fla.,
June 18, 2013 /PRNewswire/ --
International Speedway Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB) ("ISC") today approved funding to redevelop the frontstretch of Daytona International Speedway, the Company's 54-year-old flagship motorsports facility, to enhance the overall experience for its fans, marketing partners and the motorsports industry. This historic, multi-year project will break ground on
July 5, 2013, and is targeted for completion in
January 2016, in time for the 54th Rolex 24 At Daytona and the 58th DAYTONA 500.
"We are truly creating history with this unprecedented endeavor," said ISC's Chief Executive Officer
Lesa France Kennedy. "I commend the board's decision to move forward on our plan to redevelop the Company's signature motorsports facility, thereby shaping the vision of Daytona for the next 50 years.
"The decision was made with strong consideration of the current macroeconomic condition and a clear view for our long-term growth," Ms.
France Kennedy continued. "This significant private investment is a strategic use of our capital that will ensure the long-term viability of the iconic speedway, and when completed, will contribute favorably to the Company's revenues, as well as to our community and the sport as a whole."
The redevelopment is expected to cost between
$375 million to $400 million, excluding capitalized interest. Total expenditures incurred for the redevelopment through
May 31, 2013 were approximately
$15 million. The Company expects to fund the redevelopment from cash on hand, cash from its operations and may use borrowings on its credit facility for a limited period of time to even out cash flow.
The five-year capital expenditure plan (2013-2017) that ISC's Board of Directors approved is not to exceed
$600 million over that period. This is consistent with the Company's previous guidance on its average annual capital expenditures range of between
$100 million to $120 million for the next several years. The five-year capital expenditure plan encompasses all the capital expenditures for ISC's 13 major motorsports facilities, including the Daytona International Speedway redevelopment, as well as any equity commitments to undertake a proposed mixed-use entertainment-oriented destination development across from Daytona International Speedway, which is still in the planning stage and subject to a number of approvals.
The vision for the redevelopment of the Daytona International Speedway frontstretch places an emphasis on enhancing the complete fan experience, beginning with five expanded and redesigned fan entrances, or injectors, along International Speedway Boulevard. Each injector would lead directly to a series of escalators and elevators that would transport fans to any of three different concourse levels, each featuring spacious and strategically-placed social "neighborhoods" along the nearly mile-long frontstretch.