Ryman Hospitality Properties, Inc. Completes Refinancing Transactions
May 23 2017 - 4:01PM
Ryman Hospitality Properties, Inc. (NYSE:RHP), a lodging real
estate investment trust ("REIT") specializing in group-oriented,
destination hotel assets in urban and resort markets, today
completed a series of refinancing transactions that were previously
announced as pending in conjunction with the Company’s release of
first-quarter earnings on May 2, 2017.
Colin Reed, chairman and chief executive officer
of Ryman Hospitality Properties, commented, “As we outlined on our
first quarter earnings call earlier this month, the state of our
large group hospitality business has never been better, with strong
demand and bookings growth, limited competitive supply, and several
major investments underway across the portfolio setting us up for
more growth to come. We are pleased to take advantage of this
strength and favorable capital market conditions to refinance our
floating rate debt and bolster an already solid balance sheet.
In total, these transactions are leverage
neutral, as the proceeds of both the Term Loan A and the upsized
Term Loan B are being used to pay down balances on the Revolving
Credit Facility. This combined transaction achieves several great
outcomes. We lowered our cost of capital by significantly improving
pricing on our Term Loan B and Revolver, moved our earliest debt
maturity out by two years from 2019 to 2021, and created ample
capacity under our Revolver, which provides additional liquidity
and flexibility to fund our current and future potential growth
investments.”
Additional Transaction
Details
Led by Wells Fargo, the Company refinanced its
existing secured $700 Million Revolving Credit Facility
(“Revolver”) with no change to the composition of its long-tenured
bank group. Maturity of the Revolver was extended from 2019 to
2021, and pricing will be determined by a leverage-based pricing
grid ranging from 155 to 240 basis points over LIBOR, representing
an improvement of 5 basis points as compared to the previous
Revolver.
The Company also obtained from the same lenders
a new secured $200 Million Term Loan A maturing in 2022. Pricing of
this loan will also be determined by a leverage-based pricing grid
ranging from 150 to 235 basis points over LIBOR, which is 5 basis
points favorable as compared to the new Revolver.
Led by Deutsche Bank, on May 11, 2017, the
Company also refinanced and upsized its secured Term Loan B from
$389 Million outstanding at the end of the first quarter of 2017 to
$500 million. The maturity of the Term Loan B was extended from
2022 to 2024. Pricing of 225 basis points over LIBOR represents an
improvement of 50 basis points as compared to the previous
outstanding Term Loan B. Institutional interest in the new Term
Loan B was high and the deal was oversubscribed, allowing the
Company to issue the new loan at par.
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 7,811 rooms that are
managed by 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, The Inn at
Opryland, a 303-room overflow hotel adjacent to Gaylord Opryland
and AC Hotel Washington, DC at National Harbor, a 192-room hotel
near Gaylord National. The Company also owns and operates media and
entertainment assets, including the Grand Ole Opry (www.opry.com),
the legendary weekly showcase of country music’s finest performers
for over 90 years; the Ryman Auditorium, the storied former home of
the Grand Ole Opry located in downtown Nashville; and 650 AM WSM,
the Opry’s radio home. For additional information about Ryman
Hospitality Properties, visit www.rymanhp.com.
Cautionary Note Regarding
Forward-Looking StatementsThis 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
the future performance of our business, availability of revolving
borrowings, new projects or investments, and other business or
operational issues. 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 economic conditions affecting the
hospitality business generally, the geographic concentration of the
Company’s hotel properties, business levels at the Company’s
hotels, the effect of the Company’s election to be taxed as a REIT
for federal income tax purposes commencing with the year ended
December 31, 2013, the Company’s ability to remain qualified as a
REIT, the Company’s ability to execute its strategic goals as a
REIT, the Company’s ability to generate cash flows to support
dividends, and the Company’s ability to borrow funds pursuant to
its credit agreement. 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 and other risks and
uncertainties described in the Company’s Annual Report on Form 10-K
for the fiscal year ended December 31, 2016 and its Quarterly
Reports on Form 10-Q and subsequent filings. 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.
Additional InformationThis
release should be read in conjunction with the consolidated
financial statements and notes thereto included in our most recent
annual report on Form 10-K. Copies of our reports are available on
our website at no expense at www.rymanhp.com and through the SEC’s
Electronic Data Gathering Analysis and Retrieval System (“EDGAR”)
at www.sec.gov.
Investor Relations Contacts: |
Media Contacts: |
Mark Fioravanti, President and Chief Financial Officer |
Brian Abrahamson, Vice President of Corporate Communications |
Ryman Hospitality Properties, Inc. |
Ryman Hospitality Properties, Inc. |
(615) 316-6588 |
(615) 316-6302 |
mfioravanti@rymanhp.com |
babrahamson@rymanhp.com |
~or~ |
~or~ |
Todd Siefert, Vice President of Corporate Finance & Treasurer
|
Robert Winters or Sam Gibbons |
Ryman Hospitality Properties, Inc. |
Alpha IR Group |
(615) 316-6344 |
(929) 266-6315 or (312) 445-2874 |
tsiefert@rymanhp.com |
robert.winters@alpha-ir.com; sam.gibbons@alpha-ir.com |
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