DAYTONA BEACH, Fla., Aug. 5, 2013 /PRNewswire/ -- International Speedway Corporation (NASDAQ Global Select Market: ISCA; OTC Bulletin Board: ISCB) ("ISC") today announced that it sold its 676-acre parcel of property located in Staten Island, New York, to Staten Island Marine Development, LLC ("Marine Development"). Marine Development purchased 100 percent of the outstanding equity membership interests of 380 Development LLC ("380 Development"), a wholly owned indirect subsidiary of ISC and owner of the Staten Island property, for a total sales price of $80.0 million.
The Company, as a result of the sale, expects to receive a cash tax benefit of approximately $41.5 million, based on its current corporate tax rate, that combined with the net proceeds will provide ISC with approximately $117.7 million in incremental cash flow. In addition to the sale proceeds, ISC has already received $4.2 million in non-refundable payments from Marine Development to have had the exclusive negotiation rights for our Staten Island property.
$7.5 million of the purchase price at closing. The remaining purchase price will be financed with the Company holding a secured mortgage interest in 380 Development as well as the underlying property. In accordance with the terms, the Company will receive the remaining purchase price of
$72.5 million in payments of approximately
$6.1 million, six months after closing and
$66.4 million, 31 months after closing, plus an annual interest of 7.0 percent on the outstanding mortgage balances. The Company expects to receive the majority of its
$41.5 million cash tax benefit during fiscal 2013 and 2014.