Ryman Hospitality Properties Announces Ongoing Dividend Policy and $100 Million Share Repurchase Program
December 17 2012 - 8:30AM
Business Wire
Ryman Hospitality Properties, Inc. (NYSE: RHP) today announced
that its Board of Directors has approved its dividend policy,
pursuant to which the Company plans to pay a quarterly cash
dividend to shareholders in an amount equal to at least 50% of
Adjusted Funds from Operations (AFFO) or 100% of REIT taxable
income, whichever is greater. The declaration, timing and amount of
dividends will be determined by future Board action.
Ryman Hospitality Properties also announced today that its Board
of Directors has authorized a share repurchase program for up to
$100 million of the Company's common stock using cash on hand and
borrowings under its revolving credit line. The repurchases are
intended to be implemented through open market transactions on U.S.
exchanges or in privately negotiated transactions, in accordance
with applicable securities laws, and any market purchases will be
made during open trading window periods or pursuant to any
applicable Rule 10b5-1 trading plans. The timing, prices, and sizes
of repurchases will depend upon prevailing market prices, general
economic and market conditions and other considerations. The
repurchase program does not obligate the Company to acquire any
particular amount of stock.
“After thorough analysis and in consultation with our Board of
Directors, we are putting in place a capital allocation policy that
we believe is in the best interest of our shareholders and our
business. As we look towards 2013 and our successful conversion to
a real estate investment trust, we believe establishing a
sustainable dividend policy and using additional capital to
repurchase our shares represents the right strategic use of capital
given our present trading multiple and hotel valuation,” said Colin
Reed, chairman, CEO and president of Ryman Hospitality Properties.
“These actions reflect the strength of our balance sheet and our
continued confidence in the stability and cash flow generation
capabilities of our business model, especially as we realize cost
and revenue synergies from our transaction with Marriott. We are
committed to a disciplined capital deployment strategy to create
value for our shareholders through dividends, share repurchases,
and when valuations are compelling, asset acquisitions.”
In addition, the Company announced today that it has called for
redemption at par on January 17, 2013 all of its outstanding 6.75%
senior notes due 2014, using its revolving credit line.
About Ryman Hospitality Properties,
Inc.
Ryman Hospitality Properties, Inc. (NYSE: RHP), formerly known
as Gaylord Entertainment Company, a leading hospitality and
entertainment company based in Nashville Tennessee, is in the
process of restructuring its assets and operations in order to
elect to be taxed as a REIT for federal income tax purposes
effective as of January 1, 2013, at which time, Ryman Hospitality
Properties intends to specialize in group-oriented, destination
hotel assets in urban and resort markets. Ryman Hospitality
Properties’ owned assets include a network of four upscale,
meetings-focused resorts totaling 7,795 rooms that are managed by
world-class lodging operator Marriott International under the
Gaylord Hotels brand. Other owned assets managed by Marriott
International include Gaylord Springs Golf Links, the Wildhorse
Saloon, the General Jackson Showboat and The Inn at Opryland, a
303-room overflow hotel adjacent to Gaylord Opryland. Ryman
Hospitality Properties also owns and operates a number of media and
entertainment assets including the Grand Ole Opry (opry.com), the
legendary weekly showcase of country music’s finest performers for
nearly 90 years; the Ryman Auditorium, the storied former home of
the Grand Ole Opry located in downtown Nashville; and WSM-AM, the
Opry’s radio home. For additional information about Ryman
Hospitality Properties, visit www.rymanhp.com.
This press release contains “forward-looking statements”
concerning the Company’s goals, beliefs, expectations, strategies,
objectives, plans, future operating results and underlying
assumptions, and other statements that are not necessarily based on
historical facts. Examples of these statements include, but are not
limited to, statements regarding the Company’s expectation to elect
REIT status and the effect of that election, future strategy and
financial performance, the expected approach to making a regular
quarterly cash dividend and the amount thereof, plans to engage in
common stock share repurchase transactions and the timing and form
thereof, the expectation of cost and revenue synergies under the
Marriott management agreements for the Company’s hotels, and the
redemption of the outstanding senior notes funded by borrowings
under the Company’s revolving line of credit. Forward-looking
statements are subject to risks and uncertainties that could cause
actual results to differ materially from the statements made. These
include the risks and uncertainties associated with economic
conditions affecting the hospitality business generally, business
levels at the Company’s hotels, the Company’s ability to elect and
qualify for REIT status and the timing and effect(s) of that
election, the Company’s ability to remain qualified as a REIT, the
Company’s ability to execute its strategic goals as a REIT, the
effects of operating costs and business disruption related to the
Marriott management transition and the REIT conversion, the
Company’s ability to realize cost savings and revenue enhancements
from the REIT conversion and the Marriott transaction, the
Company’s ability to generate cash flows to support dividends,
future board determinations regarding the timing and amount of
dividends and changes to the dividend policy, which could be made
at any time, the determination of Adjusted Funds from Operations
and REIT taxable income, and the Company’s ability to borrow funds
pursuant to its credit agreements and to refinance indebtedness.
Other factors that could cause operating and financial results to
differ are described in the filings made from time to time by the
Company with the U.S. Securities and Exchange Commission (SEC) and
include the risk factors described in the Company’s Annual Report
on Form 10-K for the fiscal year ended December 31, 2011 and the
Company’s Quarterly Reports on Form 10-Q for the fiscal quarters
ended March 31, 2012, June 30, 2012 and September 30, 2012. The
Company does not undertake any obligation to release publicly any
revisions to forward-looking statements made by it to reflect
events or circumstances occurring after the date hereof or the
occurrence of unanticipated events.
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