Kentucky Derby operator Churchill Downs Inc. is seeking to raise $500 million to refinance existing debt as maturities loom, adding to a rush of firms tapping the market for risky loans. The firm is pitching a seven-year loan at an interest rate of roughly 1.75 percentage points above the benchmark and a discounted price of 99.5 cents on the dollar, according to a person familiar with the matter. Bank of America Corp. is managing the sale, said the person, who asked not to be identified because they’re not authorized to speak publicly.

Churchill Downs, whose flagship horse race is known as “the greatest two minutes in sports,” is also planning to raise another $400 million in unsecured debt. The proceeds will be used to repay debt maturing in 2027 and 2028, including $600 million of notes due in May. Firms are swarming the leveraged loan market to refinance debt and fund acquisitions, rushing to lock in tight credit spreads ahead of an expected Federal Reserve rate increase this week.

Moody’s Ratings assigned a Ba1 rating to Churchill Downs’ proposed loan, and left the company’s Ba3 grade unchanged. While the firm benefits from Kentucky Derby’s long history, popularity and stable performance, its historical appetite for large strategic investments may pose risks, Moody’s said Monday in a note to clients. In its latest takeover, Churchill Downs agreed in July to acquire 49% of United Tote Co. from a subsidiary of the New York Racing Association Inc. for an undisclosed price. The company’s debt stood at about 3.7 times a measure of earnings at the end of the second quarter, according to a statement.