DALLAS -- Lone Star Jockey Club plans to sell about $100 million of notes within 60 days to finance a major league horse racetrack in North Texas, but some investment industry sources are skeptical that the high-risk deal will leave the starting gate.

The project, a joint venture between a private investment partnership and Grand Prairie, Tex., already was rejected by the market earlier this year when Arkansas-based Stephens Inc. put together a financial package based on a proprietary structure. Institutional and other investors balked at buying into the deal, which relied on U.S. Treasury bonds to guarantee principal and arbitrage profits.

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