International Speedway Corporation and KB Marine Sign Agreement for Sale of Staten Island Property
November 12 2009 - 4:10PM
PR Newswire (US)
DAYTONA BEACH, Fla., Nov. 12 /PRNewswire-FirstCall/ --
International Speedway Corporation (Nasdaq Global Select Market:
ISCA; OTC Bulletin Board: ISCB) ("ISC") today announced that it
entered into a definitive agreement (the "Agreement") to sell its
676-acre parcel of property located in Staten Island, New York, to
KB Marine Holdings LLC ("KB Marine"). The Agreement contemplates KB
Marine's purchase of 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 million. The
agreement also calls for the transaction to close no later than
February 25, 2010; the closing would be subject to certain
conditions. (Logo:
http://www.newscom.com/cgi-bin/prnh/20091005/FL87045LOGO ) Upon
execution of the Agreement, ISC received a $1 million initial
payment, which is non-refundable subject to limited conditions of
ISC performance. KB Marine has the opportunity to receive a $5
million credit to the sales price if the closing date occurs on or
before December 31, 2009. "We are very pleased to announce the
execution of this agreement as it has been our intention to find a
buyer interested in redeveloping this site to its highest and best
use, which would be for port-related and logistic activities," said
Brian K. Wilson, ISC's Vice President of Corporate Development. "KB
Marine plans to do exactly that, which will benefit economic
development and job creation in Staten Island, New York City and
the region as a whole. We look forward to KB Marine completing its
due diligence process, securing the required equity commitments to
acquire the property and closing the transaction in the next few
months." The Company expects the proceeds from the sale, net of
applicable broker commissions and other closing costs to be
consistent with its current carrying value, resulting in an
immaterial gain or loss on the transaction upon closing. From a tax
perspective, ISC expects to realize a current cash tax benefit of
approximately $39 million to $42 million in fiscal 2010 as a result
of the impairments previously taken to reduce the carrying value to
its estimated fair value. The Company recognized impairments of
approximately $85 million in its fiscal 2006 fourth quarter results
related to the Company's decision to discontinue its speedway
development efforts on Staten Island, and approximately $13 million
in its fiscal 2009 third quarter results to adjust its then current
carrying value of its property to fair market value. Total net
proceeds including the tax benefit will provide the Company
approximately $110 million to $115 million in incremental cash
flow. International Speedway Corporation is a leading promoter of
motorsports activities, currently promoting more than 100 racing
events annually as well as numerous other motorsports-related
activities. The Company owns and/or operates 13 of the nation's
major motorsports entertainment facilities, including Daytona
International Speedway® in Florida (home of the Daytona 500®);
Talladega Superspeedway® in Alabama; Michigan International
Speedway® located outside Detroit; Richmond International Raceway®
in Virginia; Auto Club Speedway of Southern California(SM) near Los
Angeles; Kansas Speedway® in Kansas City, Kansas; Phoenix
International Raceway® in Arizona; Chicagoland Speedway® and Route
66 Raceway(SM) near Chicago, Illinois; Homestead-Miami Speedway(SM)
in Florida; Martinsville Speedway® in Virginia; Darlington Raceway®
in South Carolina; and Watkins Glen International® in New York. In
addition, ISC promotes major motorsports activities in Montreal,
Quebec, through its wholly owned subsidiary, Stock-Car Montreal.
The Company also owns and operates MRN® Radio, the nation's largest
independent sports radio network; the Daytona 500 Experience(SM),
the "Ultimate Motorsports Attraction" in Daytona Beach, Florida,
and official attraction of NASCAR®; and Americrown Service
Corporation(SM), a subsidiary that provides catering services, food
and beverage concessions, and produces and markets
motorsports-related merchandise. In addition, ISC has an indirect
50 percent interest in Motorsports Authentics®, which markets and
distributes motorsports-related merchandise licensed by certain
competitors in NASCAR racing. For more information, visit the
Company's Web site at http://www.iscmotorsports.com/. Statements
made in this release that express the Company's or management's
beliefs or expectations and which are not historical facts or which
are applied prospectively are forward-looking statements. It is
important to note that the Company's actual results could differ
materially from those contained in or implied by such
forward-looking statements. The Company's results could be impacted
by risk factors, including, but not limited to, weather surrounding
racing events, government regulations, economic conditions,
consumer and corporate spending, military actions, air travel and
national or local catastrophic events. Additional information
concerning factors that could cause actual results to differ
materially from those in the forward-looking statements is
contained from time to time in the Company's SEC filings including,
but not limited to, the 10-K and subsequent 10-Qs. Copies of those
filings are available from the Company and the SEC. The Company
undertakes no obligation to release publicly any revisions to these
forward-looking statements that may be needed to reflect events or
circumstances after the date hereof or to reflect the occurrence of
unanticipated events. The inclusion of any statement in this
release does not constitute an admission by International Speedway
or any other person that the events or circumstances described in
such statement are material.
http://www.newscom.com/cgi-bin/prnh/20091005/FL87045LOGODATASOURCE:
International Speedway Corporation CONTACT: Charles N. Talbert of
International Speedway Corporation, +1-386-681-4281; or Alan Marcus
of The Marcus Group, +1-973-890-9590, for KB Marine Holdings LLC
Web Site: http://www.iscmotorsports.com/
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