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Ryman Hospitality Properties has completed a private placement of USD 700 million of 6.250% senior unsecured notes due 2035. The notes were issued by subsidiaries RHP Hotel Properties and RHP Finance Corporation and are guaranteed by the company and certain subsidiaries. The offering is expected to generate about USD 689 million in net proceeds after expenses. The financing is part of Ryman’s plans to fund its approximately USD 1.38 billion acquisition of the JW Marriott Orlando Grande Lakes and The Ritz-Carlton Orlando, Grande Lakes.
Ryman Hospitality Properties has completed the previously announced private placement of USD 700 million in 6.250% senior unsecured notes due 2035. The notes were issued by RHP Hotel Properties, LP and RHP Finance Corporation, the company’s operating partnership and finance subsidiary.
The notes are guaranteed by Ryman Hospitality Properties and subsidiaries that also guarantee the operating partnership’s existing credit facility and outstanding senior unsecured notes. The company expects to receive approximately USD 689 million in net proceeds from the offering after deducting initial purchasers’ discounts and commissions and estimated offering expenses.
The financing is linked to Ryman’s planned acquisition of the JW Marriott Orlando Grande Lakes and The Ritz-Carlton Orlando, Grande Lakes. The company has agreed to acquire the two Orlando properties for approximately USD 1.38 billion, with the purchase expected to be funded through a combination of the senior notes proceeds, cash on hand and proceeds from its recent common stock offering.
Ryman had priced the senior notes offering earlier this month, with the transaction scheduled to close on August 25, subject to customary closing conditions. The company has now confirmed the completion of the offering.
The notes are senior unsecured obligations and were offered through a private placement to qualified institutional buyers and certain non-US investors. The securities are not registered under the US Securities Act and cannot be publicly offered in the United States unless registered or covered by an applicable exemption.
The debt financing follows Ryman’s recent equity fundraising. The company also completed an underwritten offering of 5.865 million common shares at USD 117 per share, including the full exercise of the underwriters’ over-allotment option, generating approximately USD 658 million in net proceeds.
If the Grande Lakes acquisition is not completed, the senior notes are subject to a special mandatory redemption provision. In that situation, the notes would be redeemed at 100% of their issue price, along with accrued and unpaid interest up to the applicable redemption date.
Ryman Hospitality Properties is a lodging and hospitality-focused real estate investment trust with a portfolio that includes the Gaylord Hotels portfolio and other hospitality and entertainment assets. The company’s financing activity comes as it expands its hotel portfolio through the planned Orlando acquisition.
Source Reuters
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