Ryman Hospitality Properties, Inc. Refinances and Extends Credit Facility to 2017
April 18 2013 - 4:10PM
Business Wire
Ryman Hospitality Properties, Inc. (NYSE: RHP) today announced
that the Company and its subsidiaries successfully refinanced their
$925 million credit facility that was scheduled to mature in August
2015. The increased and extended $1 billion credit facility will
mature in April 2017 and is comprised of a $700 million
revolving credit line ($154 million of which was drawn at
close) and a fully funded $300 million term loan. The Company
was able to secure favorable pricing on the facility with initial
pricing set at LIBOR + 1.75%. Pricing is determined on a grid
pricing structure based on a consolidated funded indebtedness to
total asset value ratio. The extended facility reflects both a
reduction in the term loan and an increase in the revolving credit
line, as well as improved pricing. The previous credit facility was
comprised of a $400 million term loan and a $525 million
revolving credit line.
With the recently completed private placement of $350 million in
principal amount of 5% senior notes due 2021, the Company and its
subsidiaries’ existing debt has no maturity date prior to 2017,
other than the Company’s $360 million outstanding 3.75 %
convertible notes due in 2014.
“This refinancing of our bank credit facility, coupled with the
recent completion of our senior notes offering, further strengthens
our balance sheet and enhances our flexibility to take advantage of
strategic growth opportunities moving forward,” stated Colin V.
Reed, chairman, chief executive officer and president of Ryman
Hospitality Properties. “Given the extremely attractive rates at
which we were able to complete these transactions, we are confident
that the timing was right and that they are in long-term best
interest of our Company and our shareholders.”
About Ryman Hospitality Properties,
Inc.:
Ryman Hospitality Properties, Inc. (NYSE: RHP), is a REIT for
federal income tax purposes, specializing in group-oriented,
destination hotel assets in urban and resort markets. The Company’s
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, Inc. under the Gaylord
Hotels brand. Other owned assets managed by Marriott International,
Inc. 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. The Company 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.
Cautionary Note Regarding
Forward-Looking Statements
This press release contains statements as to the Company’s
beliefs and expectations of the outcome of future events that are
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. You can identify these statements by
the fact that they do not relate strictly to historical or current
facts. Examples of these statements include, but are not limited
to, statements regarding future growth opportunities and the future
timing of debt maturities. These 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 compliance with agreements
governing our debt, economic conditions affecting the hospitality
business generally, the geographic concentration of the Company’s
hotel properties, business levels at the Company’s hotels, the
Company’s ability to remain qualified as a REIT, the Company’s
ability to execute its strategic goals as a REIT or to make
strategic acquisitions, 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, 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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